As Patanjali Ayurved-owned Ruchi Soya hit the capital market to raise Rs 4,300 cr to become debt-free, Zee Business Managing Editor Anil Singhvi interviewed Yoga Guru Swami Ramdev for special discussion on Ruchi Soya's follow-on public offer (FPO).

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A follow-on offering is the issuance of additional shares made by a company after an initial public offering (IPO).

Market Guru Anil Singhvi interviews Swami Ramdev amid Ruchi Soya FPO - WATCH 

Meanwhile, Ruchi Soya Industries had raised Rs 1,290 crore from anchor investors.

Ruchi Soya FPO

Baba Ramdev-led Patanjali Ayurved-owned Ruchi Soya on Thursday hit the capital market to raise Rs 4,300 crore through its follow-on public offer (FPO) as it aims to become a debt-free company.

The issue closes on March 28. 

The price band has been fixed at Rs 615 to Rs 650 per share.

Post the FPO, Patanjali Group's holding in Ruchi Soya will come down to about 81 per cent, and the public will hold about 19 per cent.

The Securities and Exchange Board of India (SEBI) had given the nod for the launch of the Ruchi Soya FPO in August 2021, after the company filed the draft red herring prospectus (DRHP) in June 2021.

The firm is coming out with the public issue to meet Sebi's norm of minimum public shareholding of 25 per cent in a listed entity. It has around three years to pare promoters' stake to 75 per cent.

Ruchi Soya will use the proceeds from the issue for furthering the company's business by repayment of certain outstanding loans, meeting its incremental working capital requirements and other general corporate purposes.

In 2019, Patanjali acquired Ruchi Soya, which is listed on the stock exchanges, through an insolvency process for Rs 4,350 crore.
Ruchi Soya primarily operates in the business of processing oilseeds, refining crude edible oil for use as cooking oil, manufacturing soya products and value-added products. The company has an integrated value chain in palm and soya segments, having a farm-to-fork business model.

It has brands like Mahakosh, Sunrich, Ruchi Gold and Nutrela.