Ruchi Soya shares continue to surge on new announcements
Premium- A part of the proceeds arising from Ruchi Soya FPO has been utilised to repay debt, the company said
Shares of Ruchi Soya surged more than 5% to ₹973 apiece on the BSE in Monday's early deals after a series of new announcements made by the edible oil manufacturer during the weekend. The stock has jumped over 21% in a month amid FPO listing.
Ruchi Soya informed that its board at meeting held on Sunday gave in-principle approval for evaluating the most efficient mode of enhancing synergies with the Patanjali food portfolio in any manner on an arm’s length basis and authorizing officials of the company to negotiate, finalise, execute and deliver the terms and conditions of the proposed transaction.
Ruchi Soya's board has also decided to change the name of the company to Patanjali Foods Limited or any other name, subject to applicable approvals.
Further, a part of the proceeds arising from Ruchi Soya FPO (follow-on public offer) has been utilised to repay debt. With that, the Patanjali-backed company has repaid ₹2,925 crore to a consortium of banks led by the government-owned State Bank of India (SBI). Ruchi Soya raised ₹4,300 crore through FPO that was launched between March 24 to March 28 at a price band between ₹615 to ₹650 per share.
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Ruchi Soya came out with the FPO to meet Sebi's minimum public shareholding norm of 25% in a listed entity. In August last year, the company had received capital markets regulator Sebi's go-ahead to launch the FPO. It had filed the draft red herring prospectus (DRHP) in June 2021. In 2019, Patanjali acquired Ruchi Soya through an insolvency process.
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