Ruchi Soya FPO: Public offering subscribed 0.12 times on Day 1; Retail portion subscribed 0.21 times

Patanjali-backed FMCG company Ruchi Soya Industries follow-on public offering (FPO) which opened for bidding today saw a slow start. The FPO was subscribed 0.12 times by 5 pm with total applications coming in for 56,30,709 equity shares against 4,89,46,260 equity shares.

The portion set aside for Retail Individual Investors (RIIs) was subscribed 0.21 times while the Qualified Institutional Buyers (QIBs) and Non-Institutional Investors portions were subscribed 0.01 times and 0.03 times. The portion reserved for the employees saw 1.76 times subscription.

A total of 35 per cent of the issue is reserved for retail investors.

Edible oil maker Ruchi Soya Industries launched its follow-on public offer (FPO) worth up to Rs 4,300 crore today. The FPO will close for subscription on March 28, 2022. It has fixed a price band of Rs 615-650 for this FPO.

The FPO is a fresh issuance of equity shares to public investors without any offer for sale component. The net FPO proceeds will be utilised for repaying debts, working capital requirements and other general corporate purposes.

The company supported by Yoga Guru Baba Ramdev has already raised Rs 1,290 crore from the anchor investors.

A follow-on public offering (FPO) is the issuance of shares for investors by a company listed on a stock exchange. An FPO is the issuance of additional shares made after an initial public offering. FPO is also known as the secondary offerings.