Baba Ramdev’s Ruchi Soya gets Sebi nod to float FPO
The FPO is being launched to meet the Sebi norm of minimum public shareholding of 25% in a listed entity
Edible oil firm Ruchi Soya, which is owned by Baba Ramdev-led Patanjali Ayurveda, has received capital markets regulator Sebi’s go-ahead to raise Rs 4,300 crore through a follow-on public offer (FPO).
The FPO is being launched to meet the Sebi norm of minimum public shareholding of 25% in a listed entity. The company, which filed the draft papers with Sebi in June, obtained its observations on August 14, an update with the regulator showed on Tuesday.
Going by the draft papers, the entire issue proceeds will be used for furthering the company’s business by repayment of certain outstanding loans and meeting its incremental working capital requirements and other general corporate purposes.
SBI Capital Markets Ltd, Axis Capital Ltd, and ICICI Securities Ltd are the lead managers to the issue.
In 2019, Patanjali acquired Ruchi Soya, which is listed on stock exchanges, through an insolvency process for Rs 4,350 crore.
The promoters currently have nearly 99% stake and according to sources they have to dilute a minimum 9% stake in this round of the FPO.
Download Money9 App for the latest updates on Personal Finance.
