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The leader of edible oil industry and one of the top FMCG players in India Ruchi Soya Industries Ltd has announced to launch of its Follow on Public Offering (FPO) next week on 23rd March 2022. Ruchi Soya FPO is going to open from 24th March 2022. The company food products like, soya protein, soya flour, soya milk, cooking oil. Mahakosh is the umbrella brand of this company. Nutrela is the largest selling soya foods in India. At present the company owns 22 manufacturing units in India.
India’s palm oil demand is increasing rapidly but in this field India is mainly depend of imported palm oil. Ruche soya access a plan to acquire 2.50 lakhs hectors of land for palm plantation in Andhra Pradesh, Tamilnadu, Mizoram, Odisha, Gujrat, Karnataka, to reduce the dependency of import.
In the year 2017 the company defaulted on loan payment and Corporate Insolvency Resolution Process was initiated against this company. In this process Patanjali Ayurveda had offered Rs. 4350 cr. to resolve this process and acquired the company. Market capital of this company Rs. 30816.28 Crore, and the Revenue(TTM) Rs. 22380.16 Crore, earning TTM is recorded Rs. 886.21 crore.
Function:
FPO is issued by the company generally to raise fund or to reduce debt, but Ruchi Soya aim is to reduce promoter holding and increase public share holding. Ruchi Soya also use this FPO for repayment, and to increase working capital.
Five years overview:
| 2016-17 | 2017-18 | 2018-19 | 2019-20 | 2020-21 | |
| Total Rev(cr) | 18620 | 12029 | 12829 | 13175 | 16383 |
| EBITDA (cr) | 687 | 136 | 222 | 458 | 1018 |
| Gross Fixed Asset (cr) | 6042 | 6036 | 3708 | 3554 | 3439 |
| Export Turnover(cr) | 1063 | 698 | 464 | 241 | 405 |
FPO Detail:
Promoter:
Outlook and Expansion:
The company is very confident in medium to long term growth in the field of processed food, edible oil and palm plantation, it also aims to launch diversified product to increase the revenue and margin.
Subscription:
The issue also reserve up to 10000 equity shares for the subscription of the eligible employees.
Listing and Allotment:
NSE & BSE,
Offer Allotment:
Lead Manager
Axis Capital Limited, SBI Capital Markets Ltd, & ICICI Securities Limited.
FAQ: |
1) Login to your bank account
2) Go to ASBA
3) Invest Section select Ruchi Soya FPO
1) Enter your bid on ‘console’
2) Accept UPI mandate.
1) Login to Zerodha Console
2) Go to portfolio and click IPO link
3) Select Ruchi Soya
4) Click ‘Bid’ button
5) Enter UPI ID, quantity and price
6) Submit to complete the process
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Disclaimer
All the information are used for education purpose only. Investing in FPO poses a risk of financial losses. Investors must therefore exercise due caution. InvestoAxis is not liable or responsible for any losses caused as a result of decisions based on the article.
