The follow-on public offer of Ruchi Soya Industries has subscribed 3.6 times as the FPO garnered bids for 17.60 crore equity shares against the size of 4.89 crore equity shares on the final day of bidding, March 28.
The retail quota, which is 35 percent of the issue, has seen a 90 percent subscription.
The company has reserved half of the offer for qualified institutional buyers and 15 percent for non-institutional investors. Their portions were subscribed 2.2 times and 11.75 times respectively.
Employees have put in bids for 77,616 equity shares against the 10,000 shares reserved for them.
The Patanjali-backed company had already mopped up Rs 1,290 crore through the anchor book, out of the total fundraising aim of Rs 4,300 crore.
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The price band for the offer, which opened on March 24, has been fixed at Rs 615-650 per share.
Ruchi Soya is a diversified FMCG and FMHG (fast moving consumer and health goods) company, with facilities and brands having a pan-India presence.
It is one of the largest FMCG companies in the Indian edible oil sector and one of the largest fully integrated edible oil refining firms in the country.
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"The company with upstream and downstream integration is one of the key players in oil palm plantation and has developed an effective strategy to procure key raw materials required for business. Also the products enjoy strong brand recognition in the Indian market and benefit from a strong, established and extensive distribution," said Astha Jain, senior research analyst at Hem Securities.
The company has forayed into health and wellness with the launch of nutraceuticals and is a pioneer and market leader in the branded textured soy protein space. Hence, Jain has a subscribe rating on the issue.
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The brands portfolio comprises Nutrela, Mahakosh, Ruchi Gold, Ruchi Star, Sunrich, Soyumm and others, which are well positioned in the market. Ruchi Gold is India's biggest selling palm oil brand.
The products are sold through a pan India network of over 97 sale depots and 4,763 distributors who reach 4,57,788 retail outlets (general trade channel) in urban, semi-urban and rural areas of the country.
Also, the company focuses on modern trade and e-commerce platforms like Big Basket. Its products were exported to over 30 countries as of 30 September 2021 across the world.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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