Ruchi Soya Industries, a subsidiary of Baba Ramdev-owned Patanjali, has filed preliminary papers with the Securities and Exchange Board of India for its follow-on public offer.
Per the company’s DRHP, it will be aiming to raise a maximum of Rs. 4,300 cores. Patanjali has to let go 9% stake in Ruchi Soya via this FPO. Patanjali has to offload at least a 25% stake in Ruchi Soya by December 2022, according to SEBI’s listing regulations.
Before we look at some of the crucial details regarding the FPO, let’s get to know about this company.
Who is Ruchi Soya?
Established in 1986, Ruchi Soya Industries is one of the leading oil refining companies in India. This company is the largest producer of soya foods nationally, with a robust value chain in the palm and soya divisions. Its product offerings comprise biscuits, cookies, noodles, honey, nutraceuticals, and more.
What’s Cooking with the Ruchi Soya FPO?
The company aims to achieve the following objectives via further issuance of shares:
- Partial/full repayment or pre-payment of its borrowings
- Meet working capital needs
- Fulfil general corporate purposes
Here are some crucial details about Ruchi Soya FPO that investors must keep in mind:
- Type of Issue: Book-Built Issue
- Face Value: 2per share
- Listing: BSE and NSE
- Market Lot: Yet to be announced
- Minimum Order Quantity: Yet to be announced
- FPO Issue Size: Yet to beannounced
- FPO Opening Date: Yet to be announced
- FPO Closing Date: Yet to be announced
Ruchi Soya Industries is yet to announce all the details regarding its FPO. We’ll update the information once it discloses the same.
Why Invest in the Ruchi Soya FPO?
Ruchi Soya stands out among its peers for the following reasons:
- This is one of the leading companies in India’s edible oil sector.
- Ruchi Soya focuses on superior procurement with high quality control standards.
- The company has a robust distribution network that comprises 100 sale depots and more than 4760 distributors.
- As of June 2021, Ruchi Soya Industries had 22 production facilities all over India with a total refining capacity of 11000 tonnes per day. Currently, out of these 22 manufacturing units, 16 units are operational.
- Ruchi Soya is constantly working on innovations to fulfil the needs of consumers.
Key Financial Highlights
This table provides crucial details regarding Ruchi Soya’s financials:
|For the Period Ended||Total Assets (Rs.)||Total Revenue (Rs.)||Profit After Tax (Rs.)|
|31 December 2020||855,879.73 lakhs||1,152,347.56 lakhs||36,643.87 lakhs|
|31 March 2020||786,761.13 lakhs||1,317,536.56 lakhs||771,461.39 lakhs|
|31 March 2019||789,427.20 lakhs||1,282,925.56 lakhs||3,412.89 lakhs|
|31 March 2018||772,056.65 lakhs||1,202,928.03 lakhs||(557,327.99 lakhs)|
Ruchi Soya shares have climbed as much as 8000% within 6 months of being relisted on the stock exchanges in January 2020. However, its prices have since then tumbled down to 6276%.
Considering the company’s position in the edible oil sector and its strong distribution network, the outlook for Ruchi Soya Industries appears to be stable. Moreover, the possible expansion of operations into the premium segment and global markets represents tremendous growth potential for this company. Hence, investors might want to consider applying for this company’s follow-on public offering.
However, before subscribing, it’s imperative for investors to consider a few crucial aspects, such as the strengths and financials of this company.
Frequently Asked Questions
- Who are some of the competitors of Ruchi Soya Industries?
Some of the competitors of Ruchi Soya Industries include Gujarat-based Ambuja Exports, Agro Tech Foods, Vijay Solvex, and Sanwaria Agro Oils Limited.
- How can one invest in Ruchi Soya’s follow-on public offering?
Individuals can subscribe to Ruchi Soya FPO by opening a DEMAT account with Angel One. Existing customers of Angel One can sign in to their account with their login credentials and subscribe to the FPO.
- What is the listing date of Ruchi Soya FPO?
The listing date has not been announced yet.
- What is the market capitalisation of Ruchi Soya?
As of 31 July 2021, the market capitalisation of Ruchi Soya Industries is Rs. 32,656 crores. It has increased by approximately 4596% after the shares of this company got listed on the bourses.
- What is the TTM P/E Ratio of Ruchi Soya Industries?
Ruchi Soya Industries stock has a TMM P/E Ratio of 47.97.
- Where is Ruchi Soya headquarters located?
Ruchi Soya Industries is based in Madhya Pradesh.
- Who is the registrar to Ruchi Soya’s follow-on public offering?
The registrar for Ruchi Soya FPO is Link Intime India Private Ltd.