Ruchi Soya to sell 51% stake to PE firm
DSIJ Intelligence / 02 Nov 2017
The stock of Ruchi Soya Industries (RSIL) spiked more than 19% on an otherwise lacklustre trading day on Thursday. The stock registered an intraday high of Rs. 33.75 per share.
The stock of Ruchi Soya Industries (RSIL) spiked more than 19% on an otherwise lacklustre trading day on Thursday. The stock registered an intraday high of Rs. 33.75 per share.
The company's board approved a binding agreement to sell a majority stake of 51% including issue of fresh equity to Devonshire Capital, a global private equity company.
The agreement also involves the restructuring of RSIL’s branded oils distribution business which would be spun out and acquired by the investor for Rs. 4,000 crore to be paid in tranches. The funds would be utilised to repay lenders.
Ruchi Soya is agri and packaged food company. Its popular brands include Nutrela, Sunrich. In September, Standard Chartered Bank and DBS Bank had initiate insolvency proceedings against Ruchi Soya. The company’s total debt as of FY16-17 was Rs. 12,232.22 crore, according to its annual report.
The stock of Ruchi Soya closed at Rs. 29.60, higher by 4.59% on Thursday.
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