The follow on public offer of Ruchi Soya Industries Ltd. was subscribed 3.60 times on 28 March 2022, the final day of bidding. The company offered 4,89,46,260 shares, against which it received a total bid of 17,60,68,935 shares as per the updates available on the official website of NSE.
Incorporated in 1986, it is one of the top-performing FMCG brands and a part of Patanjali Group, competing in the Indian edible oil sector. Ruchi Soya Industries Ltd. is a diversified company with its wings spread in edible oil and its by-products, honey, atta, oil palm plantation, oleochemicals, cookies, rusks, biscuits, etc. As of June 2021, this company owns 22 manufacturing units and a refining capacity of 11000 tonnes per day.
Ruchi Soya Industries Ltd.’s FPO started on 24 March 2022 and continued till 28 March 2022. The company planned to raise a fund of Rs. 4,300 crores via this FPO. Moreover, it set the price band ranging from Rs. 615 to Rs. 650 per equity share.
Keep reading to know more about how different investor segments responded to the company’s offering and its overall performance on the last day!
Performance of Different Investor Segments on the Last Day
The bid details from the various investor segments in the FPO of Ruchi Soya Industries Ltd. are discussed in detail below.
- The company received total bidding of 3,08,27,706 shares under the Qualified Institutional Buyers (QIB) investor category against an offering of 1,39,81,910 shares.
- Among the 1,04,86,305 shares offered to Non-Institutional Investors (NII) the company received bids for 12,32,05,383 shares.
- The total bidding placed by Retail Individual Investors (RII) was for 2,19,58,230 shares against an allotment of 2,44,68,045 shares.
- Under the Employees category, Ruchi Soya Industries Ltd. received bids for 77,616 shares against the 10,000 shares that it offered.
Refer to the following table to get details on how many times the company received subscriptions from individual categories:
|No. of Times Subscribed||2.20 times||11.75 times||0.90 times||7.76 times||3.60 times|
A Closer Insight of Ruchi Soya Industries Ltd.’s Anchor Allotment
Ruchi Soya Industries Ltd. raised Rs. 1,290 crores through anchor allotment on 24 March 2022, ahead of its public issue. It made the allotment to 46 anchor investors by offering them a total of 1.98 crore equity shares. Thus, it was an excellent response by the anchor’s side.
In this round, the company also offered around 21.1% to 24 mutual fund schemes. These include SBI, UTI, Kotak, Quant, Aditya Birla Sun Life, etc.
There were also foreign investors who participated in this anchor round. They include:
- BNP Paribas
- Yas Takaful PJSC
- Societe Generale
- The Sultanate of Oman – Ministry of Defence Pension Fund
- MK Cohesion
- Abu Dhabi based Insurance Company
- UPS Group
The objectives set by the company as to how they will be using funds raised from this initial public offering are:
- Providing for the need of increasing working capital
- Prepayment or repayment of the company’s debt, either fully or partially
- Funds for general corporate purposes
Day 1 and Day 2 Performance Status of Ruchi Soya Industries Ltd. FPO
The subscription status of Ruchi Soya Industries Ltd. FPO for Day 1 and Day 2 are given in the table below:
|Day 2||0.41 times||0.26 times||0.39 times||3.68 times||0.37 times|
|Day 1||0.01 times||0.03 times||0.21 times||1.76 times||0.12 times|
Ruchi Soya Industries Ltd. is a company diversified in FMCG and FMHG, facilitating people all around India. Furthermore, it has a robust distribution channel network and extensive knowledge in the field. Thus, as per expert view, it stands a better chance to grow in future. Experts even say the response they have gained in FPO is remarkable, thus making it a great investment option for investors.
However, one must be precautious when making the final decision. Look into the company financial statement, net profit and other details that may influence investing decisions.
Frequently Asked Questions
1. Who are the lead managers of Ruchi Soya Industries Ltd. FPO?
The lead managers of the initial public offering led by Ruchi Soya Industries Ltd. are:
- ICICI Securities Limited
- SBI Capital Market Limited
- Axis Capital Limited
2. What is the maximum and minimum lot size set for Ruchi Soya Industries Ltd.’s public offering?
The minimum lot size set for Ruchi Soya Industries Ltd. FPO is 1, amounting to Rs. 13,650 for 21 shares. On the other hand, the maximum lot size amounts to 14, including 294 shares for Rs. 1,91,100.
3. What are the pre and post shareholding percentages of Ruchi Soya Industries Ltd. FPO promoters?
The pre and post-shareholding percentages of Ruchi Soya Industries Ltd. FPO promoters are 98.90% and 80.82%, respectively.
4. What is the net profit recorded for FY 2021?
The total net profit recorded for FY 2021 stood at Rs. 68,077.18 lakhs.
5. Where did the listing of Ruchi Soya Industries Ltd.’s FPO take place?
The listing of Ruchi Soya Industries Ltd. FPO took place at BSE and NSE.
Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.