Ruchi Soya stock closes 13% higher as new FPO shares make market debut

Stock of Ruchi Soya ended 13% higher after the fresh shares of the recently concluded follow-on public offering (FPO) started trading today. Ruchi Soya stock opened with a gain of 3.8% at Rs 850 against the previous close of Rs 818.85 on BSE. The stock hit an intra day high of Rs 940, rising 14.8% on BSE.

Later, the shares closed at Rs 924.85, rising 12.94% on BSE. It has risen 22.54% in the last two sessions.

Ruchi Soya Industries stock stands  higher than 5 day, 20 day, 50 day and 100 day moving averages but lower than 200 day moving averages.

The stock gained 31.57% in one year and risen 8.58% in one year.

Total 30.24 lakh shares of the firm changed hands amounting to a turnover of Rs 266.73 crore. Market cap of the firm stood at Rs 33,479 crore.

Also Read: Ruchi Soya stock tanks 19% after board clears share allotment for FPO

About 66.15 million new shares issued in the Rs 4,300-crore FPO began trading today.

Santosh Meena, Head of Research, Swastika Investmart said,"Ruchi Soya may see some selling pressure on an immediate basis as it will see unwinding in FPO arbitrage positions. Therefore, investors who applied for arbitrage gain, should book profit while long-term investors can remain invested because multiple positive things are going for the company, shortage of palm oil and oilseeds will improve the realisations which augur well for the profitability in the short to medium term. Technically, the 700 level should act as an immediate floor for the stock."

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% 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.