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

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.

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

Ruchi Soya, which got approval for the FPO in August 2021, was acquired by Patanjali for its Nutrela brand of products in 2019 for Rs 4,350 crore through the insolvency process.

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

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.

Recently, a clip of Ramdev urging viewers to invest in Ruchi Soya stock during a yoga session on Aastha TV channel went viral. The market watchdog asked Ruchi Soya to explain why the yoga guru violated norms.

Ruchi Soya shares relisted on 27 January 2020 at Rs 16.10 apiece and soared around 52 week high of Rs 1,378 on 9 June 2021. The stock is now trading at Rs 1,004.35 on the BSE, down 6.22 percent from its previous close.