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Ruchi Soya files FPO document to raise Rs 4,300 cr, dilute promoter holding

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Processed food manufacturer Ruchi Soya Industries has filed a draft red herring prospectus (DRHP) with SEBI to launch a follow-on public offer (FPO) for raising up to Rs 4,300 crore, according to media reports.

The FPO is being launched to meet the SEBI norm of minimum public shareholding of 25 per cent in a listed entity.

PTI quoted unnamed sources as saying that the promoters have to dilute a minimum 9 per cent stake in this round of the FPO. The FPO is likely to hit the capital market next month after securing SEBI’s approval. Promoters currently hold 98.9 per cent stake in the company. As per the SEBI listing rules, the company needs to bring down promoters’ stake to achieve the minimum public shareholding of 25 per cent in compliance with the listing requirement under the Securities Contract (Regulation) Rules, 1957. Ruchi Soya has three years to reduce its promoters’ stake to 75 per cent.

Ruchi Soya, which primary markets edible oils and soya value-added products under the brand names of Sunrich, Ruchi Gold and Nutrela, was acquired in 2019 by Pantanjali Ayurved through an insolvency process for Rs 4,350 crore.