Yoga guru Swami Ramdev-led Ruchi Soya Industries raises Rs 1,290 crore (around $170 million) from anchor investors such Oman’s Pension Fund, Rakesh Jhunjunwala-backed Alchemy Capital Management and Volrado Venture Partners, among others.
Patanjani Ayurved Ltd-owned FMCG firm Ruchi Soya has allotted shares worth Rs 1,290 crore to anchor investors ahead of its Rs 4,300-crore follow-on public offering (FPO), the company said in a statement.
A total of 19.83 million shares were allotted at Rs 650 apiece. The FPO will consist only of new issuance of equity shares to public investors, with no component of an offer for sale.
Ruchi Soya's FPO is priced between Rs 615 and Rs 650 per share. The issue price is 27-32% lower than Wednesday’s closing price of Rs 897 per share.
The offer will open for public subscription on March 24 and close on March 28.
Venture capital investor Volrado Venture Partners is led by Akash Bhanshali, son of veteran investor Vallabh Bhansali’s late brother and Enam co-founder Manek Bhanshali.
In the anchor category, foreign investors such as Société Générale, BNP Paribas, The Sultanate of Oman Ministry of Defence Pension Fund, and UAE-based YAS Takaful also participated in the FPO.
Authum Investment And Infrastructure, SBI MF, Kotak MF, Birla MF, HDFC Life Insurance, Ask Group, and Quant MF are among the domestic investors that received allotment.
The proceeds from the FPO will be used to reduce Ruchi Soya's debt. At present, Patanjali Ayurved Ltd holds a 98.9% stake in the company, while the public shareholding is at just 1.1%. After the offer, Patanjali’s holding will be at 81% and public shareholding will go up to 19%.
Axis Capital Limited, ICICI Securities Limited and SBI Capital Markets Limited are the book running lead managers for the FPO.
In 2019, Patanjali acquired Ruchi Soya for Rs 4,000 crore under the corporate insolvency resolution process. Besides repaying the debt to the consortium of lenders, it will also use the proceeds to fund its working capital requirements, and for other general corporate purposes.
Ruchi Soya, which is a major player in the packaged consumer goods space, said on Monday that it will diversify its product portfolio. The company will segregate its food and non-food division, as a part of its restructuring plans, it said without divulging any further details.
Ruchi Soya's main business is the processing of oil seeds and the refinement of crude oil for cooking. It is also the first and largest manufacturer of soya foods, with a 40% market share under the Nutrela brand. From downstream and upstream processing, it produces oil meal, soya food items, nutraceutical products, biscuits, and value-added products. Ruchi Soya is also engaged in trading in various products and the generation of wind energy.
For the quarter ended December 2021, Ruchi Soya clocked a net profit of Rs 234 crore on revenues of Rs 6,280 crore. At the current market price, the company commands a market cap of around Rs 26,900 crore.
