Ruchi Soya board has approved the change in its name to Patanjali Foods Ltd, the company said in its filing to the exchanges on Monday. 

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“The Board of Directors have decided to change the name of the company to Patanjali Foods Limited or any other name as may be made applicable by the Registrar of Companies, Maharashtra, Mumbai subject to all other applicable approval,” the exchange filing said.  

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The board also gave its in-principle approval to enhance synergies with Patanjali Ayurved Limited's food portfolio in any manner on an arm’s length basis, Ruchi Soya’s filing stated further.  

The company’s board authorised the officials to negotiate, finalise, execute and deliver the terms and conditions of the proposed transaction to enhance synergies with Patanjali Ayurved. 

Market analyst Varinder Bansal termed this as a good move, and see a surge in the company’s market cap. He termed this name change as a good move by the company and which will help both parent and subsidiary. He further said that the margin of the company will grow by 11-12 per cent once the food business of Patanjali merges with Ruchi Soya. 

The edible oil business and food business EBITDA of Ruchi Soya is expected to be around Rs 1400 crore and Rs 600 crore this year, while in the next year, they may grow by 50 per cent each, Bansal said. 

The market capitalization of the company may jump to around Rs 50,000 crore from Rs 35000 crore at present in next two years, this translates into a growth of over 42 per cent, the analyst said. 

Bansal sees the name changing of Ruchi Soya as an indirect listing of Patanjali on the bourses, quoting global investment bank CLSA’s 2015 report.  

Zee Business Managing Editor Anil Singhvi said that the stock price of the company may get almost doubled around Rs 1600-1800 per share on a long-term basis. The stock on Monday gained 8 per cent to Rs 999 per share on the BSE intraday trade.