Ruchi Soya, a major manufacturer of edible oils and food products, has been renamed Patanjali Foods Limited, after the company’s board approved the name change at a meeting conducted on April 10.
In a filing with the exchange on Monday, Ruchi Soya, which is owned by Patanjali, revealed that its board has approved a rebranding.
“The Board of Directors has decided to change the company’s name to Patanjali Foods Limited or any other name as may be made applicable by the Registrar of Companies, Maharashtra, Mumbai, subject to other applicable approvals,” the company said.
In addition, the board has granted in-principle sanctions to increase synergies with Patanjali Ayurved Limited’s food portfolio in any manner consistent with the principle of independence. Additionally, the board authorized company officials to negotiate, finalize, execute, and deliver the terms and conditions of the proposed transaction in order to maximize synergies with Patanjali Ayurved.
At 10:34 a.m., the share price increased by more than 6% to Rs 979.
Ruchi Soya FPO
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The news arrives only two days after Ruchi Soya’s follow-on public offering (FPO) was listed on the bourses on Friday. In comparison to its issue price of Rs 650, the counter reached a peak of Rs 882.55, resulting in a gain of 36% for the investors who received shares in the public offering.
The FPO was 3,6 times oversubscribed, with offers for 17,56 crore equity shares versus the offering size of 4,89 crore equity shares on the final day. The oil and food products giant launched its FPO on March 24 in order to raise Rs 4,300 billion.
In the meantime, Ruchi Soya announced on Friday that it has repaid Rs 2,925 crore in loans to banks and is now debt-free after raising Rs 4,300 crore in a follow-on public offering. Patanjali Ayurveda Ltd’s managing director, Acharya Balkrishna, tweeted that Ruchi Soya is now debt-free.