New Delhi: Edible oils maker Ruchi Soya Industries today said its board has given nod to sell 51 per cent stake to global PE firm Devonshire Capital for Rs 4,000 crore.

The Board has also approved filing of a petition with the National Company Law Tribunal (NCLT) for this, as required under the Companies Act, Ruchi said in a BSE filing.

It said the board "gave approval for signing of a binding term sheet with Devonshire Capital for investment in Ruchi Soya Industries via acquisition of a majority stake including issue of fresh equity".

As per the agreement, Ruchi Soya will sell 51 per cent stake in the company to Devonshire Capital, which will also acquire total control in the specific edible brands and distribution business.

The deal is valued at Rs 4,000 crore and will be paid in tranches, the company said, adding that the amount will be used for clearing debt.

Ruchi Soya Managing Director and CEO Dinesh Shahra said: "This strategic investment by Devonshire will enhance the value of our business and provide an effective solution to resolve our outstanding issues with the banks, financial institutions and operational creditors."

The company is optimistic on an early completion of this restructuring exercise after all necessary approvals of the lenders and legal formalities, he added.

Shares of Ruchi Soya rose 4.59 per cent to settle at Rs 29.60 a piece on BSE after the announcement.