New Delhi: Ruchi Soya Industries, part of the Patanjali Group, is in the final stages of launching its follow-on public offering (FPO) in the last week of February, sources say.
Market experts said Ruchi Soya’s FPO will ensure compliance with the minimum public shareholding standards stipulated by the Sebi by significantly increasing the company’s free float.
The Draft Red Herring Prospectus (DRHP) available on Sebi’s website indicates that the FPO is offered through a pure new issue of shares. The main objectives of such an FPO are to strengthen the financial position of the company by repaying or prepaying existing debt, by self-financing additional working capital requirements, and by self-financing other general objectives of the company.
A legal expert clarified that launching an FPO is more complicated and time-consuming than a simple vanilla IPO. The source revealed that Ruchi Soya is required to comply with Listing and Disclosure Requirements (LODR) and Capital Issuance and Disclosure Requirements (ICDR) before launching a public offering.
Such compliance requirements usually complicate the situation and historically there have been hardly any FPOs in Indian capital markets mainly for this reason.
Since Ruchi Soya is said to have obtained all the necessary approvals for the launch of FPO, this company will become the first Indian company to enter the capital markets after the successful completion of the IBC process.
Ruchi was acquired by Patanjali Group in December 2019 after completing the IBC process. Ruchi Soya is now being held up as a role model for other companies vying for a turnaround after the IBC process.
I have read a few good stuff here. Definitely worth bookmarking for revisiting. I surprise how much effort you put to create such a wonderful informative website.
Hello there, I found your web site by the use of Google while looking for a similar matter, your web site came up, it looks good. I’ve bookmarked it in my google bookmarks.