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NEWS

BABA RAMDEV’S RUCHI SOYA

FILES FPO DOCUMENT TO RAISE

UP TO RS 4,300 CR

Baba Ramdev-led Patanjali Ayurveda owned firm Ruchi Soya
has filed draft red herring prospectus (DRHP) with SEBI
and the two stock exchanges – BSE Limited and National
Stock Exchange of India Ltd., to launch a follow-on public
offer (FPO) for raising up to Rs 4,300 crore. The move came
in response to meet the SEBI norm of minimum public
shareholding of 25 per cent in a listed entity. The FPO is
likely to hit the capital market next month after SEBI’s nod.

The move will also pare Ruchi Soya’s debt. Under SEBI’s
Securities Contract (Regulation) Rules, 1957, the company
has to bring down its promotors’ stake below 90% within
eighteen months of acquisition since public shareholding
has dipped below 10% and then 75% within three years.

Currently, Promoters group held 98.90 per cent stake in the
company. In a regulatory filing, Ruchi Soya said that the
issue committee constituted and authorized by its board
has approved raising of funds by way of further public offer
of equity shares of the company.

In 2019, Patanjali acquired Ruchi Soya, which is listed on stock
exchanges, under the Insolvency and Bankruptcy Code for
Rs 4,350 crore. Ruchi Soya is engaged in the business of
processing of oilseeds, refining of crude edible oil for use,
manufacturing of soya products and value-added products.
It owns brands such as Mahakosh, Sunrich, Ruchi Gold and
Nutrela.

U. S. FDA ISSUES

WARNING LETTER

TO LUPIN FOR THE

COMPANY’S SOMERSET,

NEW JERSEY FACILITY

Indian multinational pharmaceutical company Lupin will have an impact on disruption of supplies or the
ltd has received a warning letter from the U. S. FDA for existing revenues from operations of this facility.
the Company’s Somerset, New Jersey facility. USFDA Furthermore, the company stated that it is committed
notifies the manufacturer in form of a warning letter in addressing the concerns raised by the USFDA and
if the company has violated FDA regulations. will work in coordination with FDA and the New Jersey
The U. S. FDA had inspected the Lupin Somerset district to resolve these issues at the earliest.
site from 10 September 2020 to 05 November 2020.
The company does not believe that the warning letter

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22 | Thecorporatereview.com | India | Vol. 2 | Issue 6 | June 2021
Thecorporatereview.com | India | Vol. 2 | Issue 6 | June 2021