“I’m a yogi and karma-yogi by nature, culture and mission”, said Baba Ramdev, Founder Patanjali Ayurveda in an exclusive conversation with Money9 ahead of the planned FPO (Follow on Public Offer) for recently acquired firm Ruchi Soya.
Patanjali Ayurved Ltd, which owns 98.9% of Ruchi Soya Industries Ltd, is planning the upcoming follow-on public offering (FPO) of the edible oil maker. On the expected floor price of the FPO, he said, “It will be investor friendly. Will ensure both Patanjali and Ruchi Soya work towards the benefit of the nation investors and consumers. Our first endeavour is to create investor wealth through Ruchi Soya, then Patanjali.”
He also said that Patanjali’s premium range of food products under Ruchi Soya umbrella are aiming to capture 50% of market share and that their biggest vision is to make India self-reliant on edible oil.
“We have managed to turnaround Ruchi Soya. We have transformed it from a commodity-focussed firm to an FMCG, health, and food company. We have brought in governance, professional management, transparency, and accountability. Going forward, its core commodity business — will account for 20 per cent of the business and rest would be all FMCG,” said Ramdev.
Due to the high promoter stake at 98.9% in Ruchi Soya, the company is required to pare its stake to meet 75% minimum public shareholding norms by December 2022, i.e. within three years of acquisition. In the forthcoming FPO, it may need to pare at least 9 per cent stake. A Rs 4,300 crore stake sale at the prevailing levels amounts to a 13% stake, which baba Ramdev said the group will have to pare by December 2022.
“Although, there are no bank guidelines and we are not required to do so, but we will make Ruchi Soya a debt-free company soon. About 62-70% of funds raised via the FPO will be used to reduce debt which can happen at one go”, said Baba Ramdev
“Urge investors to invest in Ruchi Soya, we will make the efforts, investors will make money and we will ensure that investors create huge wealth. Investors will get more than they expect in Ruchi Soya.”, said Baba Ramdev
The Patanjali Group, including Ruchi Soya, is on track to becoming the largest FMCG player in the country this year overtaking Hindustan Unilever, according to Baba Ramdev.
“By 2025, we will overtake HUL in terms of both turnover and profitability”, he said
“Will share the good news on launching of Patanjali IPO by December 2021”, said Baba Ramdev on the listing plans for the group.
He also shared insights on the Zomato IPO and the blockbuster listing by saying, “If a loss making company like Zomato can command a Rs 1 lakh crore market capitalisation, one can only imagine what a debt free company like Patanjali group can list at as Patanjali group has a track record. Sky is the limit for Ruchi Soya’s growth. “
(Follow Money9 for latest Personal finance stories and Market Updates)
These nudges may seem insignificant at start, but once applied may prove powerful enough to achieve the impossible
Govt must procure just as much as it needs to meet requirements of consumers entitled to rationed grains plus a buffer for contingencies like Covid-19
One of the key issues with MSPs is that they distort production decisions as many farmers grow wheat because of the assured returns on its cultivation
Small savings banks & their participation will most certainly lead to greater competition in the space — and this competition may lead to consequences