Ruchi Soya seeks enabling approval from shareholders for fund raise

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SME Times News Bureau | 28 Nov, 2020
Ruchi Soya is seeking an enabling resolution from the shareholders for raising up to Rs 10,000 crore through equity by an offer for sale by the promoters through public issue, QIP, and rights issue.

A notice for the company AGM said that this approval is for an amount not exceeding Rs 10,000 crore and can be in the form of further public issue, QIP, rights issue, and offer for sale of shares held by the promoters to the public through offer document in accordance with the relevant provisions of the SEBI ICDR Regulations.

Pursuant to the implementation of resolution plan as approved by the NCLT, the promoters/promoters group presently holds 98.90 per cent equity shareholding in the company and the remaining 1.10 per cent equity shares form part of the public shareholdings in the company.

In terms of the provisions of continuous listing requirement as stipulated under Rule 19A of the Securities Contracts (Regulation) Rules, 1957 (SCRR), as amended, where the public shareholding in a listed company falls below 25 per cent, as a result of implementation of the resolution plan approved under Cection 31 of the IBC, such company shall bring the public shareholding to 25 per cent within a maximum period of three years from the date of such fall, in the manner specified by the Securities and Exchange Board of India (SEBI), and if the public shareholding falls below 10 per cent, the same shall be increased to at least 10 per cent, within a maximum period of 18 months from the date of such fall, in the manner specified by SEBI.

Hence, the company is required to increase its public shareholding so that it can achieve the minimum public shareholding (MPS) in compliance with the requirements of Rule 19A of SCRR.

Yoga guru Ramdev, his younger brother Ram Bharat and close associate Acharya Balkrishna will be on the board of Ruchi Soya, which was recently acquired by Patanjali Ayurved.

Ruchi Soya Industries Ltd in a notice to the shareholders has sought approval for the appointment of Ram Bharat, 41, as the Managing Director of the company. Bharat will be paid a salary of Re 1 per annum, the notice said. Also, Balkrishna, 48, has been re-designated as Chairman of the company. He too will be paid Re 1 per annum. The notice also sought the appointment of Ramdev, 49, as a Director on the company board.

Besides, Girish Kumar Ahuja, Gyan Sudha Misra and Tejendra Mohan Bhasin are being appointed as Independent Directors on the company board.

Patanjali Ayurved paid Rs 4,350 crore to take over Ruchi Soya. The acquisition helped Patanjali acquire the edible oil plants as also the soybean oil brands of the company such as Mahakosh and Ruchi Gold.