The edible oil maker said reports suggesting reverse merger of Patanjali Ayurved with the company is factually incorrect.
With reference to news item dated 30 June 2020 quoting "Patanjali may reverse merge Patanjali Ayurved with Ruchi Soya," Ruchi Soya Industries clarified on Tuesday (30 June) that the news was factually incorrect.Shares of the edible oil maker hit a lower circuit limit of 5% at Rs 1360.40 on Tuesday (30 June). It has fallen 9.75% in two sessions.
It slumped 5% to Rs 1,431.95 on Monday (29 June) after the company reported dismal Q4 March 2020 numbers on Saturday (26 June). On a standalone basis, Ruchi Soya reported a net loss of Rs 41.25 crore in Q4 March 2020 as against a net profit of Rs 32.11 crore in Q4 March 2019. Net sales rose 1.4% to Rs 3190.96 crore in Q4 FY20 over Q4 FY19.
Ruchi Soya was taken over by Baba Ramdev's Patanjali Ayurved on 18 December 2019 through the bankruptcy process. Patanjali group infused Rs 4,300 crore into Ruchi Soya via equity, debt and preference shares. Currently 99.03% (about 29 crore shares) of Ruchi Soya are held by 15 Patanjali group entities. The remaining 0.97% (about 28 lakh shares) is held by public shareholders.
Following the acquisition, shares of Ruchi Soya were relisted from 27 January 2020. On the first day of relisting, the stock settled at Rs 16.90 on the BSE. Since then, the stock touched a record high of Rs 1,535 on 26 June 2020. Between 27 January - 26 June, the Ruchi stock soared 8982.84%.
The sharply rally was due to low public float in the company. As per the regulation, Patanjali has to increase the public shareholding in Ruchi Soya to 10% in 18 months of its relisting. The minimum public shareholding has to reach 25% in three years.
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Ruchi Soya is one of the largest manufacturers of edible oil in India.
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