Ruchi Soya is one of the largest FMCG companies in the Indian edible oil sector and one of the largest fully integrated edible oil refining companies in India. Through its brand Nutrela, the company has a presence across the entire value chain in the palm and soya segment and extends downstream to the oleochemicals and other by-product and derivatives business. Further, the company has also expanded its packaged food portfolio by acquiring Patanjali’s product portfolio of biscuits, cookies, rusks, noodles, and breakfast cereals.
The company is part of the Patanjali group, one of India’s leading FMCG and health and wellness companies which owns a 99% stake in the company. The entire follow-on offer will comprise of fresh issue of equity shares aggregating up to Rs. 4,300 crores, will help bring down promoters shareholding, taking a step forward to meeting Sebi’s minimum public shareholding (MPS) norm of 25%.
|Financial Year Ended
||Revenue (₹ Crores)
||PAT (₹ Crores)
|As of September, 2021
You can check out more information on the Ruchi Soya FPO in the prospectus filed by the company.
||24th March 2022 to 28th March 2022
||₹ 615 - 650
|Minimum Bid Quantity
||21 and in multiples thereof
|Finalization of Allotment
||5th April 2022
|Initiation of Refunds
||6th April 2022
|Credit of Shares
||7th April 2022
|Date of Listing
||8th April 2022
|Mandate end date
||13th April 2022
|Anchor Investors Lock-in End Date
||27th April 2022
What is FPO Follow-on Public Offer?
A Follow-on Public Offer is launched by an already listed company to issue shares to the public. Like an IPO, this issue can be in the form of new shares or an offer for sale from the promoter or major investor group.
How do I apply to the Ruchi Soya FPO?
You can apply for the Ruchi Soya FPO using any supported UPI app by following two steps:
On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.
How to check the allotment status for Ruchi Soya FPO?
You can check the allotment status for the Ruchi Soya on the website of the Registrar and Transfer agent. Alternatively, you can also check the allotment status on the NSE website.
CMP of Ruchi Soya is around 900 and price of FPO is 615-650. Isn’t this a nice arbitrage opportunity to apply for FPO shares and sell on listing? Or will price of Ruchi Soya come down by then?
Also what effect does this low price of FPO has on those who hold shares now?
The price should come down by then theoretically. currently only 1.1% of share is floating after FPO 25% will be floating. Most likely Market makers will apply shares in that ratio and just before listing or on listing day price will adjust .
Since there will be infusion of 18% fresh shares, this will dilute the value of current shares so this should also reduce CMP of Ruchi Soya.
I might be wrong but. Theoretically I think price upon listing of shares should be around Rs 737 + premium if any.
Suppose current outstanding shares are 100, this will increase to 118 post FPO. With CMP of 870, so (100 * 870 / 118 = 737.3). That’s my assumption.
Due to the circulation of speculative messages, SEBI has allowed retail investors to withdraw their applications in the Ruchi Soya FPO till March 30th. You can learn more about it in this letter of intimation ( PDF ) from the company.
Withdrawal requests can be placed till 2 PM on March 30th by creating a ticket here with your 14-digit FPO application number. The application number can be found on your registered email ID.
The funds blocked towards the FPO application will be released by your bank once your application is withdrawn.
Received email from CDSL yesterday (06 APR 2022),
that the shares i had bid for,
have been credited to my CDSL demat account (linked to Zerodha).
However, they are NOT yet reflecting in the holdings page on Kite (nor in Console yet).
i see the following timeline in console.zerodha.com/portfolio/ipo
Can i place a CNC sell order in Kite today
of the units i have in my demat (but NOT yet seen in Kite) ?
…or alternately, what is the way for me to sell the shares of Ruchi Soya at the earliest?
Shares will reflect in your holdings on Kite on the day of listing. Shares are scheduled to list on 8th April.
I assume this means there is no way i can sell the Ruchi Soya shares bought in the IPO today (07-APR-2022).
This wasn’t very obvious from the timeline in the console.
So, i suppose “Demat transfer” does NOT mean ready to sell.
Thank you for the quick clarification.
In case of an IPO, it is obvious that shares won in the IPO-bid
can only be sold starting from the listing date of the stock.
(as the stock presumably doesn’t show-up in market/trades before listing).
I got confused by the following combination of events…
- This being an NFO (follow-up offer) while the stock is already being traded in the market.
- CDSL confirming credit to demat account yesterday.
- This support page mentioning that shares shall be seen in terminal on credit-date + 1
- This other support page that does mention listing date,
but does NOT explicitly mention when one can begin trading the shares received in the IPO/NFO.
Might be worth updating the above 2 support pages to highlight
that in case of an IPO/NFO,
the shares shall be available in the terminal for trading (Console/Kite) on the Listing date
irrespective of the demat-transfer-date/credit-date?
(i.e. similar to how one can intraday-short stocks
by selling them first in the day and settling them at the end of day
one cannot sell the stocks bought in IPO/NFO before they show-up in Kite,
even if they are already credited to one’s demat account)