On Tuesday, Sebi approved the FPO of Patanjali Ayurvedic edible oil company Ruchi Soya, led by Baba Ramdev. Ruchi Soya has been approved to raise Rs 4,300 crore through a follow-up public offering (FPO).
Benefits to Investors: Investors of the company took advantage of Wednesday’s trading. During the trading, Ruchi Soya’s share price crossed the Rs 1130 mark with a gain of nearly three per cent. Investors were trading at Rs 30 per share compared to the previous trading day. Talking about the market capitalization of the company, it reached Rs 33,430 crore.
What do you make of this amount? According to data provided to SEBI, Taste Soy uses the proceeds of FPOs to continue its business, pay off some outstanding debts, meet its growing capital requirements and other general corporate objectives.
Let us tell you that Patanjali Ayurveda has acquired taste soy in 2019. This is a listed company. Patanjali acquired Ruchi Soya under the bankruptcy process for Rs 4,350 crore. Pioneers currently hold 99 per cent stake.
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What is an FPO: This is similar to an IPO. Under this, the company listed on the stock exchange offers to raise money to sell its shares publicly. The first offer is called an IPO. After that the company will be listed. But a public offering to sell shares after listing is called an FPO.