First goal is to make Ruchi Soya debt-free, says Baba Ramdev on Rs 4,300-crore FPO

Baba Ramdev (File picture)

Patanjali Ayurved Group-controlled Ruchi Soya, backed by yoga guru Baba Ramdev, has priced its Rs 4,300 crore follow-on public offering (FPO) which will run from March 24 to 28 at Rs 615-650 a share.

Ruchi Soya Industries will hit the capital markets with a Rs 4,300-crore follow-on offer later this week, making the country's largest edible oil-maker the first to be re-listed after the bankruptcy process.

Also Read: Ruchi Soya prices its follow-on public offering at Rs 615-650 a share

"We have been directed to liquidate 25 percent equity by December. With the use of the proceeds, our first goal is to make Ruchi Soya debt-free as soon as possible," said Baba Ramdev in an exclusive interview with CNBC-TV18.

The higher end of the price band – Rs 650 a share – represents a 35 percent discount from Thursday's closing price. The firm said the minimum bid will be for 21 shares and in its multiples thereafter.

The proceeds from the FPO will be used for repaying certain outstanding loans, meeting incremental working capital requirements, and other general corporate purposes.

The red herring prospectus says shares will be credited on April 5 and their trading will start a day after. Refunds will be initiated on April 4.

Ruchi Soya pioneered soya foods in India under the Nutrela brand in the 1980s. Patanjali group's acquisition enables Ruchi Soya to benefit from the ayurveda firm's pan-India distribution network, know-how in FMCG and group synergies.

At 1:39pm, shares of Ruchi Soya traded 0.98 percent higher at Rs 919 apiece on the BSE.