Ruchi Soya’s FPO has a strong listing in the market. The issue price was listed at Rs 855 at a premium of 30 per cent as compared to Rs 650. Intraday strengthened up to 36 percent.
Ruchi Soya FPO Listing: Ruchi Soya, a subsidiary of Baba Ramdev’s company Patanjali, has made great profits in the follow-on public offering (FPO). Today the company’s FPO has a strong listing in the market. The issue price was listed at Rs 855 at a premium of 30 per cent as compared to Rs 650. Whereas in intraday, it strengthened by 36 percent and reached a price of Rs 885. Experts say that the fundamentals of the company are looking good, so long-term investors are advised to stay in the stock. However, those who had invested for arbitrage gains should recover profits.
stay investor or make profit
Swastika Investmart Ltd. Head of Research Santosh Meena says that Ruchi Soya shares may see some selling pressure on an immediate basis. The investors who had invested money in the company’s FPO for arbitrage gains, should now recover profits. However, if you have a long-term view, stick with the stock. He says that at present, many positive factors are working with the company. The realization of the company is expected to improve with the shorttage of palm oil and oil seed. Due to which the profit of the company will also increase in the short to mid term. Technically the 700 level is acting as immediate support for the stock.
how is the valuation
According to a report by Swastika Investmart itself, Ruchi Soya has a strong backup from Patanjali Group. The company has a strong product portfolio and is one of the fully entered edible oil refining companies in India. Looking at the valuation, it is below the industry average.
Ruchi Soya’s FPO was open from March 24 to March 28. Its floor price was Rs 615 while the cap price was Rs 650. The company had fixed a price band of Rs 615-650 per share for this. The proceeds from the FPO will be used by the company for further growth of the business by repayment of some of its outstanding loans, its growing working capital requirements and other general corporate objectives.
FPO was subscribed 3.60 times
Ruchi Soya’s FPO of Rs 4,300 crore was open for subscription on March 24-28 and a price band of Rs 615-650 per share was fixed for shares with a face value of Rs 2. The allotment of shares is done at Rs 650 per share. The shares which have been issued through FPO are listed in the market on April 8.
(Disclaimer: Stock investment advice is given by experts. These are not the personal views of DigitNews.in. Markets are risky, so take expert opinion before investing.)