Ruchi Soya FPO to open on March 24: All you need to know

Edible oil firm Ruchi Soya, owned by Patanjali Ayurved group,
will hit the capital markets with a follow-on public offer (FPO) on Thursday,
March 24, 2022. The issue to raise Rs 4,300 crore will remain open for
subscription for three days and conclude on March 28.  Ruchi Soya, the largest edible oil maker in the country,
is the first company to be re-listed after the bankruptcy process.

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Patanjali, which currently holds 98.9% of the company,
will dilute around 19% at the upper end and 18% at the lower end of the price
band. The remaining 6% to 7%, to meet the mandatory 25% public float, will be
diluted before the SEBI deadline of December 2022, the company said.

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Here are key points to know about Ruchi Soya FPO

Price Band: Ruchi Soya management led by chairman Acharya
Balakrishna and non-executive director Baba Ramdev, has fixed the price band
for the FPO at Rs 615-650 per share.

Subscription: The issue will open for subscription on
March 24 and will close on March 28.

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Lot size: Investors who wish to subscribe to Ruchi Soya
FPO can bid in a lot of 21 equity shares and its multiples thereafter. At the upper price band ,a single lot of Ruchi Soya Industries will cost Rs 13,500.

Reservation portions: Half of the issue size has been
reserved for qualified institutional buyers, 35% for the retail investors and
the remaining 15% for the non-institutional bidders. The issue includes a
reservation of up to 10,000 equity shares for subscription by employees the
company said in an exchange filing.

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Anchor investors: The anchor book size has been fixed at
Rs 1,290 crore. Foreign Investors for the issue include Societe Generale, BNP
Paribas, Sultanate of Oman, Ministry of Defence Pension Fund and Yas Takaful
PJSC. Domestic investors will be SBI Group, Kotak MF, Birla MF, HDFC Life, Ask
Group, Quant MF.

Purpose: Ruchi Soya will utilize the net proceeds from
the FPO for repayment of certain outstanding loans, funding incremental working
capital requirements, and other general corporate purposes, according to the
draft red herring prospectus (DRHP).

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Managers: SBI Capital Markets, Axis Capital and ICICI
Securities are the books running lead managers to the issue while Link Intime
India is the registrar of the issue.

About the company

Ruchi Soya is engaged in fast-moving consumer goods
(FMCG) and fast-moving health goods (FMHG). It is primarily involved in the
business of processing oilseeds, refining crude edible oil for use as cooking
oil, manufacturing soya products, and value-added products. Its flagship brand
Ruchi Gold is one the largest selling palm oil brands in the country. Its other
leading brands include Mahakosh, Sunrich, Ruchi Star and Ruchi Sunlight.

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It is also the largest manufacturer of soya foods under
the brand name Nutrela with a 40% market share. In 2019, Patanjali Group had
acquired the stock exchange-listed company through an insolvency process for Rs
4,350 crore.