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

25 Mar 2022 , 08:11 PM

The follow-on public offering of Ruchi Soya Industries Ltd, a diversified FMCG and FMHG focused company, with strategically located manufacturing facilities and well-recognised brands having pan India presence, 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 the second day of bidding, the issue was subscribed 37%.

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 each.

SBI Capital Markets Limited, Axis Capital Limited and ICICI Securities Limited are the book running lead manager to the Issue (“BRLM”).

According to the report released by Hem Securities Research “Company is bringing the issue at price band of Rs 615-650 per share at price earnings multiple of 28times on pre issue FY21 eps basis. Company with upstream and downstream integration is one of the key players in oil palm plantation & 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 & benefit from a strong, established and extensive distribution network. .Company has foray into health and wellness space with launch of Nutraceuticals & is Pioneer and market leader in branded TSP space”. The brokerage has recommended to “subscribe” to the issue.

Ruchi Soya is recognized amongst the largest branded oil packaged food company. Its ‘Ruchi Gold’ brand has a market leadership position, on account of being India’s highest selling palm oil brand  and also the pioneers and largest manufacturers of soya foods in India under the brand name of “Nutrela’, which Ruchi Soya launched in 1980s.

The Company is recognised amongst the largest branded oil packaged food company with a strong portfolio of brands in various types of cooking oils under categories such as palm, soybean, mustard, sunflower, cottonseed etc. with robust brands portfolio of “Ruchi Gold”, “Mahakosh”, “Sunrich”, Ruchi Star and Ruchi Sunlight.

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.