The Securities and Exchange Board of India (SEBI) has approved Baba Ramdev's Ruchi Soya products application for Follow-on Public Offer (FPO). The market regulator approved the company's contract, under Patanjali Ayurveda led by Baba Ramdev, for an FPO of Rs 4,300 crore, a source close to the development said.Ruchi Soya could open FPO next week. In June, the edible oil company filed a document with SEBI to launch a public service (FPO) program to raise funds up to Rs 4,300 crore.Minimum stock ratioThis FPO was introduced to meet the low shareholding of SEBI public shares by 25 per cent in the listed business, under the Securities Protocol (Regulations) Act, 1957. Also read : Shares of Apollo hospital hit the top 52 weeks in Q1 numbers; international trade enhances stock to ‘succeed’ In line with this trend, facilitators should reduce the minimum by 9 percent in this round. The promotional team holds a 98.90 percent stake in the company. According to SEBI's small shareholder policy, the company needs to reduce the stamp of promoters in order to achieve a minimum of 25 percent of the public share in line with the list requirement. The company has until December 2022 to pollute its stake to 75 percent. How the money will be spentReports indicate that 60 percent of FPOs will be used primarily to pay Ruchi Soya's debt, while 20 percent will be used for operating expenses and another 20 percent for general corporate spending. Also read : FM Nirmala Sitharaman to meet with CEOs of public sector banks on August 25 to review financial performance In 2019, Patanjali Ayurveda acquired Ruchi Soya through a process of Rs 4,350 million. Ruchi Soya mainly operates in the oil seed processing business, refining crude oil for use as cooking oil, and the production of soy products and additives.The company has a range of prices included in palm and soybean segments and a fork-for-business business model. It has products like Mahakosh, Sunrich, Ruchi Gold and Nutrela in its stable.
