New Delhi, March 24
Ruchi Soya, owned by Patanjali Ayurved, on Thursday opened its follow-on public offering (FPO) at Rs 4,300 crore from the capital market to become a debt-free company. The issue will close on March 28 with a price range of Rs 615 to Rs 650 per share.
The proceeds from the FPO would be used to repay the term loan of Rs 3,300 crore to make Ruchi Soya debt free.
Asked why the price range was kept lower during Wednesday’s action of Rs 897, yoga guru Ramdev told a press conference here that it was done to give good returns to investors.
The company has already raised Rs 1,290 crore from senior investors and Ramdev said he was confident the FPO would be successful as people trusted his products.
The combined annual turnover of the Patanjali Ayurved Group and its subsidiary Ruchi Soya is around Rs 35,000 crore and the aim is to become India’s number one food, FMCG and agriculture over the next five years, Ramdev said.
Patanjali Ayurved will also spin off all of its food businesses into the listed entity Ruchi Soya Industries. There will be several other public offerings as Ramdev has planned to list several other companies under the Patanjali group.
Ruchi Soya was acquired by Patanjali Group for Rs 4,350 crore via insolvency proceedings.
In 2020-2021, Patanjali Ayurved had recorded revenue of Rs 9,783.81 crore, while other group entities recorded revenue of over Rs. 4,000 crore, including Patanjali Natural Biscuits (Rs 650 crore), Ayurveda arm Divya Pharmacy (Rs 850 crore), Patanjali Agro (Rs 1,600 crore), Patanjali Parivahan (Rs 548 crore) and Patanjali Gramoudyog (Rs 396 crore).
Ramdev said Ruchi Soya and Patanjali Ayurved will not compete with each other. Patanjali Ayurved plans to transfer all food business to Ruchi Soya while the parent company will operate in the non-food, traditional medicine and wellness space. Ruchi Soya will focus on edible oil, food and consumer products, nutraceuticals and palm oil plantation.