FMCG company Ruchi Soya, which was taken over by Baba Ramdev’s Patanjali Ayurveda under the Insolvency and Bankruptcy Code (IBC), plans to go ahead with a further public offering (FPO) in a bid to raise more funds.
The move would also allow the company to meet SEBI’s minimum public shareholding norms.
In a regulatory filing on Sunday, Ruchi Soya said that the Issue Committee, constituted by the board, on June 12 approved the raising of funds and also approved the draft red herring prospectus to be filed with the capital market regulator.
“We wish to inform you that the Issue committee constituted and authorised by the Board of Directors of the Company, by way of a circular resolution dated June 12, 2021, has approved (i) raising of funds by way of further public offer of equity shares of the Company and (ii) the Draft Red Herring Prospectus dated June 12, 2021 (‘DRHP’) for filing with Securities and Exchange Board of India (‘SEBI’) and BSE Limited and National Stock Exchange of India Limited,” it said.
Industry sources suggested that the company has filed the draft prospectus with SEBI and may raise around Rs 4,300 crore through the FPO.
The share issue would also help the company achieve the SEBI’s minimum public shareholding norms.
As per the data on the BSE website, as of March 31, 2021, promoters held 98.90 per cent shares in the company.
At the end of the day’s trade on Friday, shares of Ruchi Soya on the BSE were at Rs 1,242.35, higher by Rs 3.50, or 0.28 per cent, from its previous close.