Ruchi Soya Industries Limited

About the company

Saddled with ₹12,000 debt and heavy losses, Ruchi Soya was grappling with bankruptcy proceedings in 2017. Following this, a prolonged battle ensued between the bidders with Ramdev-owned Patanjali Ayurved emerging as a winner in 2019. The new owners have quickly scripted a turnaround after taking over the diversified fast-moving consumer goods (FMCG) company. The company has turned [ **profitable**](https://www.businesstoday.in/interactive/immersive/patanjali-ramdev-ruchi-soya-fmcg-company/#:~:text=His%20company%2C%20Patanjali%20Ayurved%2C%20acquired,the%20company%20has%20turned%20profitable.) and its debt has been sizably reduced. Subsequently, shares of the company, which were again listed on the exchanges in 2020, have seen strong traction. Now, Ruchi Soya is all set to launch a follow-on public offer (FPO) to further reduce debt and [ **reportedly**](https://economictimes.indiatimes.com/markets/ipos/fpos/ruchi-soyas-follow-on-public-issue-of-rs-4300-cr-to-open-on-march-24/articleshow/90185410.cms) dilute the promoter’s stake to meet the market regulator’s norms. **All about the FPO** Ruchi Soya is a FMCG company with a strong presence in branded refined edible oil and soya food segments. The company owns and operates Ruchi Gold – the largest selling palm oil brand in India. It also sells refined oil under brand names such as Nutrela, Mahakosh, Sunrich and Ruchi Star. It is also one of the largest manufacturers of soya foods in India and owns the popular brand Nutrela. In fact, in the palm and soya segments, the company has a presence across the value chain ‒ sourcing, supplying, manufacturing, branding and distribution. Ruchi Soya has also expanded its footprints overseas and exports value-added soya products to more than 38 countries. In addition to edible oil and soya, it has a presence in the biscuit, cookies, rusks, noodles and breakfast cereals segments and sells them under Patanjali brand. The company also sells nutraceutical and wellness products under the joint branding of Patanjali and Nutrela. Besides these segments, the company also has other business verticals such as oleochemicals, edible soya flour, honey and atta (flour); oil palm plantation and wind power. **Financials** Revenue: 13%; Net Profit: 347% (FY19-21 CAGR) **Strengths** * A leader in the branded soya chunks space with a share of 40%. * FPO proceeds will help to reduce debt and thereby improve the balance sheet. * Operates in segments with higher costs and longer gestation periods, which creates entry barriers. * Has one of the largest refining capabilities (11,000 tonnes per day). * Product portfolios cater to a wide range of tastes, preferences, price points and consumer segments. **Risks** * Rising input costs due to the Russia-Ukraine conflict may hurt profitability. * Significantly (around 84% in FY21) depends on the sale of edible oil products for revenue. * Requires sizable amount of working capital for operations and growth. * Operates in highly competitive FMCG space. **Good to know** India’s branded edible oil market is expected to grow at a CAGR of 6.6% between FY20 and FY25. Being a major player in the market, Ruchi Soya could benefit from consumers’ growing preference for branded oil products.

Financial performance (₹ Cr)

IPO Roadmap / Timeline

1. IPO Opens

   Completed
   24 Mar 2022

   Bidding starts for all investor categories

2. IPO Closes

   Completed
   28 Mar 2022

   Last day to place your bid

3. Basis of Allotment

   Completed
   26 Mar 2022

   Share allotment finalised

4. Refund Initiation

   Completed
   06 Apr 2022

   Refunds credited for non-allottees

5. Credit to Demat

   Completed
   05 Apr 2022

   Allotted shares credited to demat account

6. Listing on Exchange

   Completed
   08 Apr 2022

   Shares list on NSE / BSE

Post-close dates are indicative as per SEBI T+3 listing framework and may change per registrar updates.