The board of directors of Patanjali Group-owned Ruchi Soya Limited has decided to change the name of the company to Patanjali Foods Limited or any other name as may be made available by the Registrar of Companies, Ruchi Soya notified in a regulatory filing on Monday. Following the development, Ruchi Soya surged as much as 8 per cent. At 12:01 pm, the shares of Ruchi Soya were up 5.5 per cent at Rs 975.
According to the regulatory filing, the company will also be evaluating the most efficient mode of enhancing synergies with the Patanjali Ayurveda Limited food portfolio in any manner on an arm’s length basis and authorizing officials of the company to negotiate, finalize, execute and deliver the terms and conditions of the proposed transaction.
The development comes days after the company raised Rs 4,300 crore via follow-on public offerings (FPO) from March 24 to March 28. The price band of the offer was Rs 615-650 per share. However, the Securities and Exchange Board of India (SEBI) on March 28 directed the company to offer an option to investors to withdraw their bids for the FPO from March 28 to March 30, 2022, after taking cognizance of several unsolicited SMS which were being circulated regarding the FPO offer by bad actors.
Following this on March 31, as many as 97 lakh bids were withdrawn from the FPO offer.
As per the Draft Red Herring Prospectus, the entire issue of the proceeds would be utilized to repay certain outstanding loans, meeting its incremental working capital requirements and other general corporate purposes.
Ruchi Soya was acquired by Baba Ramdev's Patanjali Group in 2019 through an insolvency process for Rs 4,350 crore. Last week, Ruchi Soya announced that it has become debt-free after repaying loans worth Rs 2,925 crore to banks.