Shares of Ruchi Soya Industries have surged close to 40 percent in three consecutive sessions. Investors' optimism is likely driven by the company's follow-on public offering (FPO) plan.
At 10:44 am, shares of the company were up 15.5 percent at Rs 1,113.5 on BSE.
The delivery volume of 1.72 lakhs on March 14 has risen by 1,312.84 percent against the 5-day average delivery volume, as per MarketsMojo website. This hints at conviction-led buying.
In the past three years, the stock has given 14,430 percent returns. YTD, the stock is up 29 percent while it has gained 56 percent in the past year.
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CNBC-TV18 had earlier reported about the upcoming FPO.
The Red Herring Prospectus for this particular FPO has been filed with the Registrar of Companies Maharashtra. Sources have told CNBC-TV18 that the Maharashtra Registrar Of Companies has approved Ruchi Soya’s FPO Red Herring Prospectus.
The FPO opens on March 24, 2022, and closes on March 28, 2022, and this FPO will help the promoters of Ruchi Soya – the Patanjali Group – to move closer towards compliance with the minimum public shareholding norm, under which the company has to dilute a minimum of 25 percent to the public in a period of three years.
According to the shareholding pattern on BSE, promoter and promoter groups hold 98.90 percent while public shareholders own only 1.10 percent as of December-end.
“I think the recent run-up in the stock price is because of the FPO announcement,” said Purvesh Shelatkar, head of institutional broking, Monarch Networth Capital.
He says if the company is able to raise money then it will become cash-rich. “What we need to see is whether Ruchi Soya will be able to raise money and if it does then how effectively will it utilise the capital,” Shelatkar added.
First Published: Mar 15, 2022 12:44 PM IST
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