Baba Ramdev owned edible oil firm Ruchi Soya, has filed a draft document with SEBI to launch a follow-on public offer (FPO) to reduce promoter holding as per norms and is likely to raise up to ₹4,300 crore via the issue.
The promoter holding in the company is over 98%, which violates the norms of public listed companies as per the market regulator. As per the SEBI listing rules the promoters can not hold over 75% stake in a listed company. Baba Ramdev led Patanjali has three years to reduce stake in Ruchi Soya.
Patanjali acquired Ruchi Soya, which is listed on stock exchanges, through an insolvency process for ₹4,350 crore in 2019.