The follow-on public offering of Ruchi Soya Industries Ltd, a diversified FMCG and FMHG focused company, with strategically located manufacturing facilities and well-recognised brands having pan India presence, received bids of 1,80,25,539 shares against the offered 4,89,46,260 equity shares, as per the 5:00 pm data available on the BSE website. On the second day of bidding, the issue was subscribed 37%.
The Employee portion was subscribed the most with 3.68 times followed by Qualified institutional buyers with 0.41 times. Retail investors portion was subscribed 0.39 times, while the part set aside for non-institutional investors was subscribed 0.26 times.
The FPO comprises equity shares of face value of Rs 2 each aggregating to Rs 4300 crore. The issue also includes a reservation of up to 10,000 equity shares for subscription by eligible employees and promoters are offloading equity shares in the range of Rs 615 - 650 each.
SBI Capital Markets Limited, Axis Capital Limited and ICICI Securities Limited are the book running lead manager to the Issue ("BRLM").
According to the report released by Hem Securities Research "Company is bringing the issue at price band of Rs 615-650 per share at price earnings multiple of 28times on pre issue FY21 eps basis. Company with upstream and downstream integration is one of the key players in oil palm plantation & have developed an effective strategy to procure the key raw materials required for business. Also company's products enjoy strong brand recognition in the Indian market & benefit from a strong, established and extensive distribution network. .Company has foray into health and wellness space with launch of Nutraceuticals & is Pioneer and market leader in branded TSP space". The brokerage has recommended to "subscribe" to the issue.
Shares of Ruchi Soya Industries Limited was last trading in BSE at Rs. 866.70 as compared to the previous close of Rs. 872.75. The total number of shares traded during the day was 26331 in over 2042 trades.
The stock hit an intraday high of Rs. 890.25 and intraday low of 861.25. The net turnover during the day was Rs. 23076046.00.