Comments
Ruchi Soya shares have been rising continuously ever since the National Company Law Tribunal approved the proposal of Baba Ramdev-promoted Patanjali Ayurved to acquire the company.
On Friday, Ruchi Soya’s stock hit the upper circuit to close at ₹6.42, a whopping gain of over 90 per cent from the 52-week low of ₹3.28 that it had registered on July 27.
The NCLT, in July, had approved the bid for Ruchi Soya under the Insolvency and Bankruptcy Code. Earlier, Patanjali Ayurveda had received the approval for its resolution plan from the committee of creditors, a group of financial creditors.
Beleaguered Ruchi Soya, which has a debt of about ₹12,000 crore as of December 31, 2017, is India’s largest edible oilseed extraction and refining company, with a capacity of 3.72 mtpa. According to the resolution plan, Patanjali will infuse ₹4,350 crore in a special purpose vehicle. While ₹4,235 crore would go to creditors, the balance ₹115 crore would be used for improving operations of Ruchi Soya.
Standard Chartered and DBS, creditors to Ruchi Soya, moved the NCLT for insolvency proceedings for about ₹700 crore. Besides, the edibile oil major also owed money to 16 other banks. Earlier, Adani Wilmar had emerged as the highest bidder with a ₹6,000-crore bid to acquire the company, pushing back Patanjali Ayurved in the ongoing insolvency process that was approved by the lenders too. However, Patanjali moved the NCLT challenging the lenders’ decision to approve Adani Wilmar’s bid. Later, Adani Wilmar, which sells edible oil under the Fortune brand, withdrew from the race.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.