Ruchi Soya, a part of Patanjali Group has come up with a follow-on public office (FPO). It will open on March 24-28 at Rs.615-650 a share. The FPO issue size is around 4,300 crore. The minimum bid will be for 21 shares and in its multiples thereafter.
What is FPO?
A Follow-on Public Offer (FPO) is the issuance of shares by a company listed on the exchange to investors. In FPO, additional shares are issued after the IPO. It is also referred to as a secondary offering.
Overview
Ruchi Soya Industries was incorporated in 1986. The company is one of the leading brands in the edible oil sector. Also, it is also the largest manufacturer of soya foods. It operates in different categories such as edible oil and by-products, Soya Protein, Biscuits, Honey, Aata, Breakfast cereals, Noodles, Nutraceuticals & wellness. The group also has other brands like Mahakosh, Sunrich, and Ruchi Gold.
Ruchi Soya has its own 22 manufacturing units. Its total refining capacity is 11,000 tonnes/day. It has a strong marketing and distribution network of 100 sales depots, 4763 distributors, and 4,57,788 retail outlets.
Yoga Guru Baba Ramdev-led Patanjali Group has acquired Ruchi Soya for Rs.4,350 crore through an insolvency process into 2019. Earlier in November 2019, the shares of Ruchi Soya were delisted. In January 2020 it was again relisted on the stock exchange at a price of Rs 16.10. The share price has touched a lifetime high of Rs.1535 which turns it into a multi-bagger investment.
Promoters
Acharya Balkrishna, Ram Bharat, Snehlata Bharat, Ruchi Soya Industries Limited Beneficiary Trust, Patanjali Ayurved Limited, Vedic Broadcasting Limited, Patanjali Peya Private Limited, Patanjali Natural Biscuits Private Limited, Divya Packmaf Private Limited, Divya Yog Mandir Trust, Patanjali Gramudyog Nayas, Patanjali Parivahan Private Limited, Vedic Ayurmed Private Limited, Sanskar Info TV Private Limited, Patanjali Agro India Private Limited, SS Vitran Healthcare Private Limited, Patanjali Paridhan Private Limited, Gangotri Ayurveda Private Limited, Swasth Aahar Private Limited, Patanjali Renewable Energy Private Limited and Yogakshem Sansthan.
Strength & Weakness
| STRENGTH | WEAKNESS |
| Experience leadership and efficient management | Competition from companies like HUL, Adani Wilmar |
| Part of FMCG company Patanjali Group | Involved in different legal procedures |
| Offline as well as an online presence | 80% of sales come from edible oil only |
| Strong distribution network in India | Relied on the third party for raw materials |
| Leading company in oil palm plantation | Negative net worth due to recent cash flow |
| Strong brands like Nutrela & Ruchi Gold | Demand fluctuations from COVID-19 |
Company Financials
| Year | Revenue (in Crore) | Profit (in Crore) |
| 31-Mar-2018 | 12,029.28 | -5,573.28 |
| 31-Mar-2019 | 12,829.26 | 34.13 |
| 31-Mar-2020 | 13,175.37 | 7,714.61 |
| 31-Mar-2021 | 16,382.97 | 680.77 |
| 30-Sep-2021 | 11,306.98 | 337.80 |
Object of issue
1) Repayment of certain outstanding loans
2) Meeting working capital requirements
3) General Corporate propose
Ruchi Soya FPO details
| IPO Opening Date | 24 March 2022 |
| IPO Closing Date | 28 March 2022 |
| Face Value | Rs.2 per equity share |
| IPO Price | Rs.615-650 per share |
| Market Lot | 21 Shares |
| Minimum Order Quantity | 21 Shares |
| Listing At | NSE, BSE |
| Issue Size | Up to Rs.4,300 Crore |
| QIB Shares Offered | 50% of the offer |
| Retail Shares Offered | 35% of the offer |
| NII/HNI Shares Offered | 15% of the offer |
Ruchi Soya FPO Lot Size
| Application | Lot | Shares | Amount |
| Minimum | 1 | 21 | Rs.13,650 |
| Maximum | 14 | 294 | Rs.1,91,100 |
Ruchi Soya FPO Promoter Holding
Pre-issue Shareholding
| Promoter – 98.90% | Public – 1.10% |
Post-issue Shareholding
| Promoter – 81.00% | Public – 19.00% |
Book-Running Lead Managers
Name of the Registrar
nice analysis buddy
Thank You, Sagar