Ruchi Soya on Sunday announced the floor price for its whopping Rs4,300 crore follow-on public offer (FPO). The issue is set to open on March 24 and bidding will be allowed till March 28, 2022. Through this issue, Swami Ramdev's Patanjali plans to adhere to the minimum shareholding rules of market regulator Sebi.
In a meeting held today, the FPO committee of Ruchi Soya decided on a floor price of Rs615 to Rs650 per equity share on the issue.
Further, the committee approved the bit allotment size. The minimum bid lot shall be 21 and in multiples of 21 Equity Shares thereafter.
The Patanjali-backed company will offer equity shares with a face value of Rs2 each amounting to ₹4,300 crore under the FPO. The issue will also include a reservation of about 10,000 equity shares to eligible employees for a subscription.
Through the FPO, promoters of the company seek to reduce their shareholding to comply with Sebi's guidance. Currently, under the Sebi direction, the minimum requirement for a public shareholding in a listed company should be 25%.
Currently, Patanjali owns 98.9% in Ruchi Soya while public shareholders own 1.1%. Post the FPO, Patanjali's shareholding in the edible oil manufacturer will reduce to 81% while public shareholding will rise to 19%.
The net proceeds will be utilized for repayment of certain borrowings, incremental working capital requirements, and general corporate purposes.
On Monday, Ruchi Soya stock will be in focus ahead of its FPO issue. Last week, on Friday, the stock settled at Rs1004.45 apiece down by Rs66.65 or 6.22% on BSE.
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Ruchi Soya fixes floor price of Rs615-Rs650 apiece on its follow-on public offer - Mint
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