Ruchi Soya's ₹4,300-crore FPO re-listed an IBC-rescued company and repaid its debt

Ruchi Soya, a major Indian edible-oil maker, was acquired by Patanjali Ayurved in September 2019 through the corporate insolvency resolution process. The rescue worked commercially, but the shareholding was extreme: Patanjali and its group held about 98.9% of the company, leaving almost no public float and a balance sheet still carrying borrowings.

In March 2022 Patanjali chose to return Ruchi Soya to the public market with a ₹4,300-crore follow-on public offer — 6.61 crore new shares priced at ₹650 — with the stated purpose of prepaying debt. The issue was subscribed 3.6 times on the final day, drawing bids for 17.60 crore shares against 4.89 crore on offer, with ₹1,289.8 crore from anchor investors.

The FPO had a bumpy final mile: SEBI allowed withdrawals after unsolicited SMS ads, cutting subscription to 3.39 times, and the stock fell after allotment. Still the board allotted the full 6.61 crore shares, proceeds went to repay borrowings, and Patanjali's holding fell to about 81%. The company later renamed itself Patanjali Foods.

Raised ₹4,300 crore at ₹650 a share, subscribed 3.6x; promoter stake fell to about 81% and debt was prepaid; by FY26 Patanjali Foods earned ₹1,814 crore profit.

With promoters at 98.9%, a large FPO was the fastest way to widen the float toward the 25% public-shareholding norm while raising cash.

Using the proceeds to prepay borrowings cleaned up the balance sheet the IBC acquisition had left behind.

The 3.6x subscription, including ₹1,289.8 crore from anchors, showed investors would fund an IBC-rescued company once operations were profitable.

The FPO widened the float and prepaid borrowings, after which the renamed Patanjali Foods scaled its food and FMCG business into a bigger consumer company.

A turnaround can end with public capital markets: Patanjali diluted a near-99% stake through an FPO to pay down debt and widen the float, setting up the listed company to scale its food business.

After the FPO, Ruchi Soya was renamed Patanjali Foods and its food and FMCG business became a fifth of revenue by FY23, growing nearly fourfold to ₹6,218 crore. By FY26 the listed company reported net profit of ₹1,814 crore on total income of ₹40,348 crore, with edible oils contributing ₹29,133 crore, and management set a five-year target of over ₹50,000 crore in turnover. The FPO became a reference point for returning companies rescued under India's insolvency code to public markets.