Patanjali Ayurved Ltd has decided to sell a stake worth Rs 4,300 crore in Ruchi Soya Industries Ltd to meet minimum shareholding criteria and cut debt. As per the norms of Securities and Exchange Board of India (SEBI), Patanjali has to bring down its holding in the company to below 90 per cent within 18 months of taking over and 75 per cent in three years.
In this regard, Ruchi Soya filed draft red herring prospectus (DRHP) with market regulator SEBI for a follow-on public offer on Saturday, PTI reported, adding that the company plans to raise up to Rs 4,300 crore through the share sale.
Ramdev-led Patanjali had acquired Ruchi Soya in 2019 through insolvency process. Patanjali will sell 9.89 per cent stake in Ruchi Soya to meet SEBI's criteria. After the stake sale, Patanjali's stake in Ruchi Soya will come down to 89 per cent. Shares of Ruchi Soya closed at Rs 1,264.15 apiece on the BSE on Monday.
Ruchi Soya primarily operates in the business of processing of oilseeds, refining of crude edible oil for use as cooking oil, manufacturing of soya products and value-added products. The company has an integrated value chain in palm and soya segments, having a farm to fork business model. It has brands such as Mahakosh, Sunrich, Ruchi Gold and Nutrela.
Last month, Ruchi Soya announced acquisition of biscuits business from Patanjali Natural Biscuits Pvt Ltd (PNBPL) in a slump sale at Rs 60.02 crore. The objective of the acquisition is to expand the product portfolio of the existing business of the company, it had said.
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