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Ruchi Soya stock rises 5% as lenders approve Adani Wilmar's Rs 6,000-crore bid

Shares of Ruchi Soya hit their five per upper circuit limit of 9.42 level on the BSE.  Similar movement was seen on NSE as well, where the stock opened at Rs 9.45 and hit its upper circuit limit, up 5 per cent over its last close.

twitter-logo BusinessToday.In        Last Updated: August 24, 2018  | 13:15 IST
Ruchi Soya stock rises 5% as lenders approve Adani Wilmar's Rs 6,000-cr bid

The Ruchi Soya stock rose in early trade today after lenders of the company approved the Rs 6,000 crore bid of Adani Wilmar to acquire the debt-ridden edible oil firm. Shares of Ruchi Soya hit their five per upper circuit limit of 9.42 level on the BSE.  Similar movement was seen on NSE as well, where the stock opened at Rs 9.45 and hit its upper circuit limit, up 5 per cent over its last close.

The stock closed at 8.98 level yesterday. The stock hit its 52-week high of 33.75 level on November 2, 2017 and 52-week low of July 23, 2018. It is down 56% during the last one year and has lost 50% since the beginning of this year.

The stock has gained after two consecutive days of fall.

Adani Wilmar's bid was approved by the committee of creditors (CoC) with about 96 per cent votes in its favour. The resolution professional will now seek approval from the National Company Law Tribunal (NCLT).

Adani Wilmar and Baba Ramdev's Patanjali group have been engaged in a long-drawn battle to take over Ruchi Soya.

Adani group firm Adani Wilmar, which sells cooking oil under Fortune brand, and Baba Ramdev-led Patanjali were in the fray to acquire Ruchi Soya.

While Adani Wilmar emerged as the highest bidder with Rs 6,000 crore offer, Patanjali group came second with a Rs 5,700 crore bid.

Following this, Patanjali Ayurved had also sought clarification from the RP (resolution professional) of Ruchi Soya related to eligibility of Adani Group to participate in the bidding process.

It also sought to know the parameters adopted by the RP to declare Adani Wilmar as the highest bidder.

Ruchi Soya is engaged primarily in the business of processing of oil-seeds and refining of crude oil for edible use. The company is also engaged in trading in various products and generation of power.

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