Patanjali’s bid for Ruchi Soya reserved

Mumbai: The National Company Law Tribunal (NCLT) Friday reserved its order on Patanjali Ayurved Ltd’s 43.50-bn-rupee resolution plan for Ruchi Soya Industries Ltd. The tribunal has directed Patanjali Ayurved to provide clarification on the source of funding for the amount raised by the company through internal accruals. Patanjali Ayurved will raise 9 bn rupees through non-convertible debentures and preference shares, and 6 bn rupees through internal accruals. The Haridwar-based company has already submitted 2 bn rupees as performance guarantee.
Additionally, Patanjali Ayurved has funding commitment of up to 44 bn rupees from banks, including State Bank of India, Bank of Baroda and Union Bank of India. Patnajali Ayurved had increased its bid offer from 40.45 bn rupees to acquire the debt-laden company, whose fair value stands at 41.61 bn rupees. The fast moving consumer goods company’s resolution plan does not include de-listing of Ruchi Soya.
Once the resolution plan becomes effective, Patanjali Ayurved will hold 98 pc stake in the company, while retail investors will hold 1.75 pc stake. Patanjali Ayurved has undertaken to bring back the minimum public shareholding in the company to 25 pc in 18 months. The Indore-based company owes around 113 bn rupees to creditors.
Earlier, Adani Wilmar Ltd, which was the successful resolution applicant, had withdrawn its 60-bn-rupee bid for the company. Today, ICICI Bank moved the tribunal seeking an order to secure 650 mn rupees under the resolution plan, in addition to the amount it will receive through the plan. In 2018, the bank had attached the funds from Ruchi Soya’s current account against a letter of credit issued earlier. The tribunal had directed the bank to reverse the transaction following a plea filed by the resolution professional.