new Delhi. Baba Ramdev is not only a yoga guru but also a market guru, the proof of this is FMCG company Ruchi Soya Industries. The company went bankrupt a few months ago and now its stock has been steadily running away from Rockage since its relisting in January. It was acquired by Patanjali Ayurved after the bankruptcy process of Ruchi Soya Company. Ruchi Soya's share price has increased 8,800 percent in the last five months.
On 27th January this year Ruchi Soya was re-listed on the stock exchanges, when the price of one share was Rs 16.90. Its price closed at Rs 1507.30 on Friday, 27 June. On Monday, the company's stock fell by Rs 73 to trade at Rs 1431.95. Patanjali Ayurved acquired it last year for Rs 4,350 crore. Ruchi Soya's market capital increased to Rs 44,592.11 crore. In this way, it has become one of the 100 most valuable companies in India in terms of market capital. Its market capital exceeds that of FMCG's flagship company Marico Limited. Marico has a market cap of Rs 44,495.88 crore.
According to Baba Ramdev's statement, the combined revenue of Patanjali (Rs 13,000 crore) and Ruchi Soya (Rs 12,000 crore) as of March 2020 has been Rs 25,000 crore. Baba Ramdev claims that the combined revenue of these two companies will reach Rs 50,000 crore to Rs 1 lakh crore in the next five years. The combined revenue of both companies for the current financial year has been estimated to be between 35 to 40 thousand crores.
The acquisition of Ruchi Soya was completed by Patanjali on 18 December. Ruchi Soya owed banks Rs 9300 crore. Of the Rs 4300 crore received from the acquisition of Patanjali, 48 percent of the banks' debt was recovered. The Adani Wilmer Company was also in the race to buy Ruchi Soya, which later lagged behind. The former shareholders' shareholding as restructuring has been reduced to zero.
Currently Ruchi Soya holds 99.03 per cent stake (about 29 crore shares) with 15 companies of Patanjali Group. These shares are locked for 3 years. The remaining 0.97 percent (about 28 lakh shares) is with 82,000 public shareholders. As per the NCLT order and SEBI rules, Patanjali will have to raise public shareholding to 10 per cent in the 18 months following the relisting. It will have to be taken to 25 percent in 3 years. This is one of the reasons why Soya's stock has been steadily rising since January to make it attractive to the general public and to meet regulatory requirements easily.
This post was published on June 29, 2020 12:02 pm
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