Ruchi Soya Industries rose 5.10% to Rs 972 after the company said its board has considered changing the firm's name to Patanjali Foods.
The board of Ruchi Soya Industries at its meeting held on 10 April 2022, approved evaluating the most efficient mode of enhancing synergies with the Patanjali Ayurved food portfolio in any manner on an arm's length basis.The board approved authorizing the company officials to negotiate, finalise, execute and deliver the terms and conditions of the proposed transaction.
Further, the board also decided to change the company's name to Patanjali Foods or any other name as may be made available by Registrar of Companies, Maharashtra, Mumbai, subject to all other applicable approval.
Ruchi Soya recently raised Rs 4,300 crore through a follow-on public offer (FPO) of equity shares. The FPO opened for public participation on 24 March 2022 and it closed on 28 March 2022. It comprised of fresh issue of equity shares for an amount aggregating to Rs 4,300 crore. The price band for the offer was fixed at Rs 615-650 per share.
The issue concluded sucessfully and the company allotted the shares at Rs 650 each.
Post FPO, Baba Ramdev's Patanjali Ayurved's shareholding in the edible oil manufacturer reduced to 81% while public shareholding rose to 19%.
The company aims to utlise the proceeds from the issue for repayment/prepayment of Rs 2663.8 crore of borrowings, funding of incremental working capital requirements of Rs 593.42 crore and remaining amount will be used for general corporate purposes.
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'. It has launched its nutraceuticals under the joint branding of 'Patanjali and Nutrela'.
Net profit of Ruchi Soya Industries rose 2.92% to Rs 234.07 crore on 40.65% rise in net sales to Rs 6280.46 crore in Q3 December 2021 over Q3 December 2020.
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