Ruchi Soya and Patanjali Ayurved weave a tangled web of business relationships
The growing business links between Ruchi Soya — on manufacturing, brand licensing and distribution — and Patanjali Ayurved could pose a concern for investors
June 17, 2021 / 03:47 PM IST
Ruchi Soya Industries’ follow-on public offer to raise Rs4350 crore will serve a few purposes. It will bring down the shareholding of its promoter—Patanjali Ayurved and group companies—by a bit, setting it on path to achieve a minimum public shareholding of 25percent. Right now, promoters own 98.9 percent of shares, an event that occurred after the acquisition of Ruchi Soya by the Patanjali group via the insolvency route.
The acquisition itself was funded by debt that, pursuant to a scheme...