Patanjali-backed Ruchi Soya FPO subscribed 37% on Day 2; QIB portion booked 41%

The follow-on public offer (FPO) of Ruchi Soya Industries was subscribed by 37 per cent on the second of its issue. The offer had begun on March 24 and will be open till March 28, 2022.

The FPO received bids of 1,80,25,539 shares against the offered 4,89,46,260 equity shares, as per the 5:00 pm data available on the BSE website on Friday.

See Zee Business Live TV Streaming Below:

The Employee portion was subscribed the most with 3.68 times followed by Qualified institutional buyers with 0.41 times. Retail investors portion was subscribed 0.39 times, while the part set aside for non-institutional investors was subscribed 0.26 times.

The FPO comprises equity shares of face value of Rs 2 each aggregating to Rs 4300 crore. The issue also includes a reservation of up to 10,000 equity shares for subscription by eligible employees and promoters are offloading equity shares in the range of Rs 615 – 650 per share.

SBI Capital Markets Limited, Axis Capital Limited and ICICI Securities Limited are the book running lead manager to the Issue.

According to the report released by Hem Securities Research, “The company is bringing the issue at price band of Rs 615-650 per share at price earnings multiple of 28 times on pre issue financial year 2020-21 EPS basis. Company with upstream and downstream integration is one of the key players in oil palm plantation and have developed an effective strategy to procure the key raw materials required for business.”

“Also, company’s products enjoy strong brand recognition in the Indian market and benefit from a strong, established and extensive distribution network. It has foray into health and wellness space with launch of Nutraceuticals, it is pioneer and market leader in branded TSP space”, he added.

Ruchi Soya is recognized amongst the largest branded oil packaged food company. It has a diversified FMCG (Fast Moving Consumer Goods) and FMHG focused company, with strategically located manufacturing facilities and well-recognised brands having pan India presence

The Company has expanded its packaged food portfolio by acquiring the ‘Patanjali’ product portfolio of biscuits, cookies, rusks, noodles, and breakfast cereals and is a part of the Patanjali group, one of India’s leading FMCG and health and wellness company.