PremiumMUMBAI: Shares of Ruchi Soya Industries Ltd, owned by Ramdev’s Patanjali Ayurved group, hit a 5% upper circuit on Friday following reports that the company plans to raise funds via a follow on public offer (FPO).
The stock traded at Rs1,070.85 apiece on the BSE, up 5% from previous close.
Mint had reported about the proposed FPO.
Patanjali had acquired the erstwhile bankrupt firm known for the Nutrela brand of products in 2019 for around ₹4,350 crore through an insolvency and bankruptcy code (IBC) process.
The process resulted in Patanjali owning 98.9% of the company, leaving very little public float in the stock market.
With the proposed FPO, the company hopes to raise fresh capital and bring in more public shareholders to meet Securities and Exchange Board of India (Sebi) norms that mandate listed companies to have at least 25% public shareholding.
The proposed sale is likely to see the company issue fresh shares worth ₹3,000-4,000 crore, said the second person. The funds raised will be used to cut down on the debt.
Meanwhile BSE has sought a clarification from the company on this news report.
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