Ramdev’s Company Got Nod from Court to buy Cooking Oil Brand
Baba Ramdev is all set to expand his brand by acquiring an oil brand and adding some more products under his umbrella.
According to the report, Yoga Guru Baba Ramdev’s company has got approval for buying out cooking oil brand Ruchi Soya Industries Ltd. And the new acquisition is done at $600 Million.
The name of the new venture by Patanjali Ayurved Ltd. is Patanjali Consortium Adhigrahan Pvt. that will have three other companies merged with Ruchi Soya. Well, India’s company court has allegedly approved a bid presented by a group of firms that are controlled by yoga guru Ramdev to take over cooking oil and soya-products maker Ruchi Soya Industries Ltd. Company court has approved a bid of Rs. 4350 crore for Ruchi Soya Industries Ltd.
According to a stock exchange filing, shareholders of Patanjali Consortium will be getting one share of Ruchi Soya for each that they hold in the former. Whereas, creditors of Ruchi Soya Industries Ltd. will receive a maximum of Rs. 4,240 crore in repayments, a 65% haircut to the verified claims of about Rs. 12,100 crore, according to the filing in the stock exchange. However, the remaining Rs. 110 crore will be used by the venture to finance the expansion of Ruchi Soya after the merger.
According to reports, shares of Ruchi Soya Industries Ltd., which have slumped 49 per cent this year, headed for its ninth straight annual decline, have now gained 1.1 per cent to Rs. 4.60 in Mumbai on Friday.