Ruchi Soya hits upper circuit on infusion plan

Patanjali group is planning to infuse around Rs. 3438 crore as equity and debt in Ruchi Soya Industries. The said amount will be utilised to settle outstanding payments of creditors of Ruchi Soya Industries.

The amount will be infused in a special purpose vehicle (SPV) 'Patanjali Consortium Adhigrahan', which will be later amalgamated with Ruchi Soya.

National Company Law Tribunal (NCLT) has earlier approved resolution plan of Patanjali worth Rs. 4350 crore after certain amendments on 06, September, 2019.

According to the resolution plan, Ramdev Baba’s company will be infusing Rs. 204.75 crore as equity and Rs. 3,233.36 crore as debt. Additionally, it will infuse another Rs. 900 crore through the subscription of non-convertible debentures and preference shares in the SPV. Also, it will provide a credit guarantee of nearly Rs. 12 crore.

It must be noted that Ruchi Soya owes over Rs. 9345 crore to lenders, that includes State Bank of India, with an exposure of Rs. 1,800 crore, Central Bank of India at Rs. 816 crore, Punjab National Bank at Rs. 743 crore and Standard Chartered Bank at Rs. 608 crore and DBS at Rs. 243 crore.

Ruchi Soya Industries is majorly engaged in the business of processing of oil-seeds and refining of crude oil for edible use.

On Monday, the stock opened at Rs. 4.84, up by 5 per cent from its previous close of Rs. 4.61 and locked in upper circuit on the BSE. The stock had hit 52-week high of Rs. 9.62 on 7th September 2018 and 52-week low of Rs. 3.28 on 24th July 2019 on the BSE.