Ruchi Soya will be debt-free by next month, says Baba Ramdev
India Today
Ruchi Soya has around Rs 3,300 crore of debt from commercial lenders and it would repay the entire amount in April, Baba Ramdev said.
Ruchi Soya Industries, backed by Ayurveda major Patanjali Group, will become debt-free by next month, Baba Ramdev said. Baba Ramdev's comment came on a day when Ruchi Soya's follow-on public offering (FPO) was launched.
Ruchi Soya has around Rs 3,300 crore of debt from commercial lenders and it would repay the entire amount in April, Baba Ramdev said.
Ruchi Soya is aiming to raise Rs 4,300 crore through FPO, subscription for which commenced on Thursday.
Ahead of the FPO, Ruchi Soya raised Rs 1,290 crore from institutional investors. This includes funds from Aditya Birla Sunlife Trustee, Kotak and UTI, as per the Business Today report.
Baba Ramdev said the proceeds would be utilized to Ruchi Soya’s expansion and repay the debt of the company.
"We are making sure there is not overlap in the different businesses of the group. This is a marriage between Patanjali and Ruchi Soya. There is now a non-compete agreement between the group firms. This will further boost its business and help it become the largest consumer goods company in next few years," Baba Ramdev was quoted as saying by Business Today.
Earlier in late-2019, Patanjali Group acquired Ruchi Soya against Rs 4,350 crore offer. At present, the company is paying Rs 1 crore in interests daily, the Business today report says.
