Ruchi Soya bought by Patanjali; shares soared ₹17 to ₹1,080

Ruchi Soya, one of India's largest edible-oil companies, collapsed under debt and was dragged into the Insolvency and Bankruptcy Code process in 2017-2018. Its brands — including Nutrela and Mahakosh cooking oils — were well known in millions of Indian kitchens, but the balance sheet was broken and the committee of creditors ran a resolution process to sell the business.

In April-May 2019 the creditors' committee approved Patanjali Ayurved's bid of ₹4,350 crore, roughly US$630 million. Patanjali, the yoga-and-ayurveda empire of Ramdev, had no edible-oil business to speak of, but it understood that Ruchi Soya's distribution and brands were the purchase: a national FMCG platform at a distressed price. The NCLT approved the plan and Patanjali took over the company, renaming it Patanjali Foods.

The market rediscovered the name after relisting: shares that resumed trading at around ₹17 in January 2020 surged to a lifetime high around ₹1,080 by June 2020 — a gain of more than 6,200% in five months. The stock re-rated as Patanjali Foods became a genuine large-cap FMCG, with the palm oil and edible-oil operations turned into profit under the new owner.

The deal was won against other bidders in a transparent creditor-run auction, which gave the price legitimacy — the ₹4,350-crore tag came from a competitive process, not from a friendly negotiation.

Patanjali took control for ₹4,350 crore; relisted shares jumped from ₹17 to ₹1,080 (over 6,200%), making it a top India FMCG

The IBC process forced a market price for the company rather than a distress fire-sale to insiders

Patanjali paid for brands and distribution, assets that survived the balance-sheet wipeout intact

The brand's retail reach let the new owner push its own ayurveda products through the same shelves

Relisting unlocked a public-market valuation for a turnaround the debt had hidden

Buying a household brand out of insolvency at the plan price, then relisting it, can mint value from a name the market had written off

Patanjali Foods grew into a multi-billion-dollar FMCG giant and its shares became a heavyweight on Indian indices. The Ruchi Soya case is taught as the flagship success story of India's IBC regime — a company that emerged from insolvency not just alive but dramatically revalued.