Ruchi Soya Industries Ltd. announced on June 15 that it has taken over the biscuit and noodle division business of its promoter Patanjali Ayurved Limited, Business Standard reports. The company signed a Business Transfer Agreement ( BTA ) with Patanjali Natural Biscuits Pvt Ltd (PNBPL ) to take over the production, packaging, and labeling of biscuits, biscuits, chips, and other related bakery products.
Following a public offer (FPO) Ruchi Soya Industries Ltd., a company owned by Patanjali Ayurved, bought the biscuits and noodle units from companies owned by their promoters for Rs 65 crore. The company announced that it has taken over the biscuit and noodle units of Patan Jali’s promoters, Business Standard reported. The company will use Rs 26,63 crore of its equity sale to repay part of its debts and use Rs 5.93 crore of its working capital tranche.
Patanjali Ayurved Ltd, the Baba Ramdev-led company, said on Friday it had secured a 3,200-crore loan from a consortium of lenders led by the State Bank of India to finance the acquisition of Ruchi Soya Industries Ltd in bankruptcy proceedings. In September, the National Company Law Court approved Baba Ramdev’s resolution plan for debt-laden Ruchi Soya. Patanjali had sold shares worth 4,300 rupees in the cooking oil producer to meet minimum shareholding standards to reduce its debt.
Ltd., the company owned by Patanjali Ayurved, announced in an initial public offering that it will acquire the biscuit and noodle division from its parent company. In its prospectus, the company announced that the proceeds will be used to advance and repay debt in form of convertible bonds and other instruments issued to one of its promoters by Ruchi Soya. The company will use Rs 2,663 crore of its IPO sale to repay part of its debt and use a tranche of Rs 593 crore as its working capital.
The remainder of the proceeds will be used by the Company for general corporate purposes. According to the company, promoters have pledged their shares in the company to a group of banks including the State Bank of India, Union Bank of India, Canara Bank, former Syndicate Bank, Indian Bank, Allahabad Bank, and Punjab National Bank. The company announced that on June 12 of this month it had taken over some of the companies that belonged to its power.
Since Patanjali has taken over the company its share value has soared and its market capitalization has reached 37,000 rupees due to low liquidity in shares. Mumbai said it had acquired the Patanjali biscuit and noodle business from the company for Rs 60 crore in May in an agreement but is required to pay the remaining 75 percent in return to acquire the business of Mumbai’s promoters within three months of the sale in May. The promoters of the company and the State pledged their shares in Ruchi Soya to a syndicate of banks (State Financial Institutions of India, Union Financial Institution of India, and Canara Financial Institution), syndicates of financial institutions (Indian Financial Institution, Financial Institution Punjab, and Nationwide Financial Institutions).
The IPO will help the promoters to reduce their 75 percent to 98 percent and thus meet the SEBI standard of at least 25 percent public participation. Falling infection rates have made it harder for flight attendants to enforce federal rules on wearing masks, which expire in mid-September. Security experts believe the repeal of the rules will remove a key source of tension that has divided the nation.
Airlines and unions have called for several measures, including more aviation officials, restrictions on the sale of alcohol on planes and at airports, and more information sharing between airlines and disruptive passengers. They have also raised the idea that the new government should maintain a list of banned passengers, one of the most restrictive, along with the no-fly list for suspected terrorists. Airline employees and external experts have offered explanations, including crowded flights, political polarization, the use of face masks during the pandemic, and lock-ins that can affect people’s mental health.