Shares of Patanjali-owned Ruchi Soya jumped over 8 per cent to hit an intraday high of Rs 999 on BSE after the Board of Directors of the company accorded its in-principle approval for evaluating the most efficient mode of enhancing synergies with the Patanjali food portfolio in any manner on an armтАЩs length basis.
The board also approved the changing of the company name to Patanjali Foods Ltd. The meeting was held on April 10.
The stock opened 5 per cent higher at Rs 974 against the previous close of Rs 924.85. Market cap of the company rose to Rs 35,109.88 crore on BSE.
Edible oil major Ruchi Soya Industries Ltd. on Friday said it has repaid Rs 2,925 crore loans to banks and has become a debt-free company. The money was paid to a consortium of bank led by State Bank of India. The other banks in the consortium are Punjab National Bank, Union Bank of India, Syndicate Bank and Allahabad Bank.
The stock of Ruchi Soya ended 13 per cent higher on Friday. It opened with a gain of 3.8 per cent at Rs 850 against the previous close of Rs 818.85 and hit an intraday high of Rs 940, rising 14.8 per cent on BSE. Later, the shares closed at Rs 924.85, rising 12.94 per cent on BSE.
The company’s board had cleared the allotment of 6,61,53,846 equity shares aggregating to Rs 4,300 crore. The allotment price for FPO was fixed at Rs 650 apiece. FPO investors withdrew nearly 97 lakh bids after markets regulator Sebi directed Ruchi Soya to give investors the option to withdraw their bids.
On April 5, the board approved the allotment of around 66.1 million shares to raise an amount of Rs 4,300 crore. The approval comes days after the company launched the follow-on public offer (FPO), which was subscribed 3.6 times.
Ruchi Soya conducted the FPO to meet Sebi’s minimum public shareholding norm of 25 per cent in a listed entity. The company said it would utilise the entire issue proceeds for furthering its business by repayment of certain outstanding loans, meeting its incremental working capital requirements and other general corporate purposes.
