Ruchi Soya FPO Announced : Will it bring Profits for New Shareholders?

Checkout all the important details on Patanjali’s Ruchi Soya Follow-on IPO including Dates, Share Price, GMP, Company Overview, Financials, and Subscription Review.

by FighterMan Updated: 11 Apr, 2022, 23:01 IST
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Ruchi Soya Industries has announced its FPO (follow-on public offering). This is to qualify for the SEBI’s policies of having 25% stake for public shareholders in the company. There is also a stake for employees depending on which the issue size may decrease.

Patanjali has 98.9% stake while the public has 1.1% stake in Ruchi Soya. After this FPO, the stakes will probably change to 81% and 19% respectively. Finally, the 75% promoter stake needs to be achieved by the company.

https://cdn0.desidime.com/attachments/photos/751634/medium/Ruchi-Soya-FPO.jpg?1647328023

What is FPO in the Stock Market?

FPO stands for Follow-on Public Offering. In FPO, a company is already listed on the stock market arena, but is willing to offer more shares to the public at a fixed price. An FPO always takes place after an IPO. You can subscribe to our IPO Group for all the latest updates on IPOs in India.

Ruchi Soya FPO Issue Details

Face Value

₹2 per equity share

Lot Size

Stay tuned

Issue Size

₹4300 Crores

QIB quota

50%

NII quota

15%

Retail quota

35%

Employee quota

10,000 equity shares

Industry

FMCG

Ruchi Soya FPO Dates

Opening on

24th March

Closing on

28th March

Allotment

31st March

Refunds

4th April

Shares Crediting

5th April

Listing

6th April

Ruchi Soya FPO Share Price

The Ruchi Soya FPO Share Price is not announced yet, but if rumors are to be believed then it will be ₹600. Ruchi Soya’s current share price on NSE is ₹1095.25 as of 15th March, 11:20. You can check our Stock Markets Group for all the latest offers on demat account opening, broking, and more.

Ruchi Soya FPO GMP

Ruchi Soya FPO’s GMP is currently ₹0. Stay tuned for all the Ruchi Soya FPO GMP latest updates here.

Ruchi Soya Company Overview

It is the largest manufacturer of edible oil in India. Ruchi Soya is ranked 175th in the top 250 consumer products companies in the "Global Powers of the Consumer Products Industry 2012". Patanjali Ayurveda acquired it in 2019.

This company was established in 1986 so comes with a good amount of experience. It is headquartered in Madhya Pradesh. Its revenue in 2021 was ₹16,382 crores. Some of its subsidiaries include Ruchi Realty Pvt. Ltd and Ruchi J-Oil Private Limited.

Ruchi Soya Company Financials

Ruchi Soya Company Financials (in crores)

Dec’20

Mar’20

Mar’19

Mar’18

Total Assets

8558

7867

7894

7720

Total Revenue

11523

13175

12829

12029

Profit After Tax

366

7714

34

5573

As we can see from the table above, profits have taken a very big hit while revenues are also down. However, asset value has shown some growth.

Subscribe to Ruchi Soya FPO or not?

Edible oil requirement is always on in India. Moreover, this company is the largest manufacturer of soya food in the country with secured palm plantations. Therefore, on the future prospects front it scores well. Also, being a part of Patanjali gives it an advantage.

You might have come across its Nutrela brand which is famous for Nutrela High Protein Chakki Atta, Nutrela Honey, and Nutrela Soya Chunks. It has 4763 distributors, 457788 retail outlets, and 22 manufacturing units which gives it an edge over its peers.

Although its financials are a bit weak, given the company’s strong base & background and the requirement of its products, you can subscribe to this FPO. What's more, you can grab it at half of its current share price in this FPO subscription!

One more point to consider is that it started at ₹21 in Feb 2020 at NSE and is now at around ₹1000. Thus, showed around 4862% growth in 2 years time.

This was all about the upcoming Ruchi Soya FPO. Do share your thoughts on this issue below. You can also ask our IPO and Stock Market Expert Dimers for suggestions or help budding stock investors.

Disclaimer: We are not SEBI registered. The information provided here-in is for educational/informative purposes only. We will not be responsible for any of your profit/loss with this channel's suggestions. Consult your financial advisor before making any decisions.

2 Comments  |  
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Entertainer Entertainer

Ab babaji chain se soyenge

Deal Subedar Deal Subedar

ruchi soya share price will tank post fpo to compensate increase in free float even after knowing this if you r investing in this god bless you 😜

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