Ruchi Soya Industries, a subsidiary of Patanjali Group, will be debt-free by next month. The company, which is currently in debt to commercial lenders for Rs 3,300 crore, will repay the entire amount in April, according to Baba Ramdev, who spoke to the media today.
The business plans to raise Rs 4,300 crore through its Further Public Offer (FPO), which will begin Thursday. It has attracted Rs 1,290 crore from institutional investors such as Kotak and UTI Mutual Fund, as well as Aditya Birla Sunlife Trustee. The proceeds, according to Ramdev, would be utilised to repay Ruchi Soya's debt as well as for the company's expansion.
The Patanjali Group, based in Haridwar, had previously bought Nagpur-based Ruchi Soya for Rs 4,350 crore in late 2019. The company is currently paying daily interest of Rs 1 crore. Ramdev said, the group management is now intending to list Patanjali Ayurved and other entities such as the Divya Pharmacy, which controls the company's herbal-natural medicines business, after the company's successful re-listing. Additionally, all of the group's packaged foods and other consumable businesses have been brought under Ruchi Soya to boost operational efficiencies and eliminate any internal competition. Patanjali will handle the non-foods portfolio, as well as ayurvedic medicines and healthcare.
Patanjali's management claims that the company has recently expanded its distribution network dramatically. It now has 55,751 distribution sites, including 100 sales depots and nearly 6,000 distributors, up from less than 10,000 in 2018. In addition, it now has a total retail reach of over 450,000 locations.
Ruchi Soya FPO to open Thursday, Know price band, lot size and more
Ruchi Soya public offer; price band Rs 615-650 apiece for its Rs 4300 cr
