Ruchi Soya share rises 5% after NCLT cleared Baba Ramdev led Patanjali's Rs 4350-cr bid
After a long wait, the investors of Ruchi Soya has a ray of hope, as Baba Ramdev's Patanjali received the nod of National Company Law Tribunal (NCLT) to acquire Ruchi Soya on a revised Rs 4350-crore bid.
After a long wait, the investors of Ruchi Soya has a ray of hope, as Baba Ramdev's Patanjali received the nod of National Company Law Tribunal (NCLT) to acquire Ruchi Soya on a revised Rs 4350-crore bid. Ruchi Soya stock today surged over 5% on the BSE after the news became public. The share fell from the pick of Rs 159.15 in January 1, 2008, to Rs 3.28. The upper price band of Rs 3.99( plus 5%) and lower price band of Rs 3.61( minus 5%) have been set on the BSE. Therefore, the share is trading at the upper band.
Ruchi Soya, which owes over Rs 12,000 crore to various creditors, will be acquired by Patanjali Ayurved for Rs 4,350 crore. Patanjali's bid for Ruchi Soya has been going on for a long time. According to the resolution plan, Patanjali will infuse Rs 4,350 crore, out of which Rs 4,235 crore will go into paying creditors, and the remaining Rs 115 crore will be used to improve operations of Ruchi Soya.
However, the tribunal said the bid would be subject to the Resolution Professional (RP) submitting the information gap regarding the exact source of funds worth Rs 600 crore (which is part of the bid amount) before the next date of hearing on August 1. The NCLT has asked the RP to furnish the actual cost of the entire resolution process before the next hearing.
Ruchi Soya owes Rs 1,800 crore to SBI; Rs 816 crore to Central Bank of India; Rs 743 crore to Punjab National Bank and Rs 608 crore to Standard Chartered Bank.
Ruch Soya is Patanjali's first major acquisition. Ruchi Soya owns brands like Nutrela, Ruchi Star, Sunrich and Ruchi Gold. It is expected that the acquisition by Patanjali will bring the company back on its feet.
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