Ruchi Soya shares up over 5 per cent 973 on the BSE in early deals on Monday following a series of fresh announcements made by the edible oil maker during the weekend. The stock has jumped over 21% in a month amid FPO listings.
Ruchi Soya Informed that its Board in its meeting held on Sunday has decided to evaluate the most efficient way of enhancing synergy with Patanjali Food Portfolio at any arm’s length basis and to negotiate, finalize, execute and deliver the Company’s executives. Granted in-principle approval to authorize Terms and conditions of the proposed transaction.
The Board of Ruchi Soya has also decided to change the name of the company to Patanjali Foods Limited or any other name, subject to applicable approvals.
In addition, a part of the proceeds from the Ruchi Soya FPO (Follow-on Public Offer) has been used to pay off debt. Along with this, the Patanjali-backed company has paid 2,925 crore to a consortium of banks led by the state-owned State Bank of India (SBI). Ruchi Soya picked up 4,300 crore through FPO which was launched between March 24 and March 28 in the price band from 615 650 per share.
Ruchi Soya came out with FPO to meet SEBI’s minimum 25% public shareholding norm in a listed entity. In August last year, the company had received capital markets regulator SEBI’s nod to launch an FPO. It had filed a draft red herring prospectus (DRHP) in June 2021. In 2019, Patanjali acquired Ruchi Soya through an insolvency process.
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