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Ramdev Baba has trumped even some of the most savvy investors on Dalal Street this year. Amidst all the gloom, the investment of his Patanjali group in edible oil company Ruchi Soya Industries has multiplied several times in terms of the stock price rise.
Patanjali group had bid ₹4,350 crore to acquire Ruchi Soya last year but the market-cap of the company now stands at ₹24,835 crore. Ruchi Soya went into bankruptcy proceedings where the majority stake in the company was picked up by Patanjali group companies last year.
On January 27, Ruchi Soya was listed at ₹17 on the stock exchanges and has been locked in continuous upper circuits. On Wednesday, the share price of the company closed at ₹839. The stock price has seen a staggering 4,835 per cent rise.
Patanjali group holds 99 per cent stake in the company. Of the total 29.58 crore shares of Ruchi Soya, only 28.59 lakh shares are held by 82,007 shareholders. The rest of the shares are with the company’s new promoters. Before the company went for restructuring 95,485 public shareholders held 80 per cent stake in the company.
“Ruchi Soya now is very different from its earlier version. The present one is a pure play edible oil manufacturer compared to the oil trading company earlier. Since there is no public float it is just moving from circuit to circuit,” Arun Kejriwal of Kejriwal Research said.
SEBI mandates that if a company wants to remain listed then promoters can hold only 75 per cent stake in it.
The rest has to be sold to the public. But experts say Ruchi Soya may have a few years to comply with the norms since it was relisted after the scheme of restructuring and with completely new promoters.
The company’s key brand of oil Mahakosh and Ruchi Gold have posted 24 times rise in profit before exceptional items and tax at ₹151 crore for the quarter ended December 2019 as against ₹6.29 crore during the same quarter of 2018.
Its revenue from operations grew by 7 per cent at ₹3,713 crore from ₹3,474 crore in December 2019.
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