Stands to be one of the top gainers after Madras Fertilizers and Omega Interactive Technologies

Chennai, 29.03.22: Shares of  the diversified FMCG and FMHG focused company Ruchi Soya Industries Ltd ended at Rs 943.05 per share on NSE and Rs 944.95 on BSE, up 15.81% and 15.94% respectively from its days opening at Rs 795.55. The NSE and BSE Traded Volume stood at 39L shares and as on 29^th March the Market Cap of the company stood over 27k cr. It touched an intraday high at Rs 978 per share.

The follow-on offer of Ruchi Soya that opened on March 24, 2022 and closed on March 28, 2022 saw itself getting subscribed 3.6 times on the final day. It received bids of 17,60,68,935 shares against the offered 4,89,46,260 equity shares as per the 5.00pm data on 28^th March, 2022. While the retail segment was subscribed 0.90%, QIB and NII segment saw 2.20 times and 11.75 times subscription, respectively. The employee reserved category was subscribed 7.76 times.

The FPO comprised equity shares of face value of Rs 2 each aggregating to Rs 4,300 crore. Last week, Ruchi Soya raised Rs 1290 crore from anchor investors, who were allotted 19,843,153 equity shares at the upper price band of Rs 650 per share. Brokerages gave a subscribe recommendation to the FPO citing reasonable valuations- post issue P/E between 26.6-34.8 times (at upper end of the issue price brand) lower compared to Adani Wilmar which trades at a PE of 57.8 times, strong brand recognition in the Indian Market, its extensive distribution network, foray into the health and wellness space besides them being one of the largest full integrated edible oil refining companies post it getting acquired by the Patanjali group and the business having prospects of a secular growth trend.

On March 28, SEBI directed the company to announce a bid withdrawal window up to March 30,2022 to all Investors/Bidders except Anchor Book Participants in action to circulation of unsolicited SMSs. The company denied any participation and informed via an exchange filing that it has filed an FIR in Haridwar to investigate the same. The revised timeline has also been informed and the commencement of trading of the equity shares is now to happen on April 8,2022 as against April 6,2022 earlier.

Misreporting’s by various media on the exodus of people withdrawing their application was clarified by BSE on March 29 stating “ The Exchange displays cumulative bids of both Exchanges every 3 minutes. Ruchi Soya FPO extended for two days for only withdrawal of bids as per SEBI’s directive. Since this was sudden change of process and system had to consider these changes, for few updates in Cumulative Bids Details section only BSE Bids data was shown instead of Cumulative data of both the Exchanges. The same was restored to previous day data.”

The company’s ‘Ruchi Gold’ brand has a market leadership position, on account of being India’s highest selling palm oil brand  and also the pioneers and largest manufacturers of soya foods in India under the brand name of “Nutrela’, which Ruchi Soya launched in 1980s. 

RSIL has a strong portfolio of brands in various types of cooking oils under categories such as palm, soybean, mustard, sunflower, cottonseed etc. with robust brands portfolio of “Ruchi Gold”, “Mahakosh”, “Sunrich”, Ruchi Star and Ruchi Sunlight and has expanded its packaged food portfolio by acquiring the ‘Patanjali’ product portfolio of biscuits, cookies, rusks, noodles, and breakfast cereals and is a part of the Patanjali group, one of India’s leading FMCG and health and wellness company

Recently Adani Wilmar came out with its Initial Public Offering which opened on Jan 27, 2022 and closed on Jan 31, 2022. The Issue of face value of Rs 1 each came at a price band of Rs 218 -230 per share and saw a good response across all investors and was subscribed 17.37 times overall. The share price of the stock has surged touching a new lifetime high at Rs 500 per share on March 29,2022,  riding on the conversations around the Ruchi Soya FPO and palm oil prices appreciating as much as 14%. Analysts expect the rise in palm oil prices to sustain.