Patanjali is ready to infuse over ₹3,438 crore as equity and debt in Ruchi Soya to settle creditors of the debt-laden company. It comes after NCLT’s (National Company Law Tribunal) approval for Baba Ramdev-led company’s resolution plan to acquire Ruchi Soya in an insolvency process with certain modifications.
According to reports by ET, the Pantanjali group will instill ₹204.75 crore as equity and ₹3,233.36 crore as debt. It will in infuse another amount of ₹900 crore through the subscription of non-convertible debentures and preference shares in the SPV (Special Purpose Vehicle). It will also give a credit guarantee of nearly ₹12 crore.
The amount will be infused in SPV Patanjali Consortium Adhigrahan Pvt Ltd-a venture by Patanjali Ayurved Ltd. and three other companies- which will merge with Ruchi Soya later. With the acquisition, Patanjali will become a significant player in soybean oils & other products. Ruchi soya manufactures for leading brands like Nutrela, Mahakosh, Sunrich, Ruchi Star & Ruchi Gold.
Shares of Ruchi Soya hit 5% upper circuit limit after the announcement of its approved amalgamation with Patanjali. According to reports, Ruchi Soya owes over ₹9,345 crore to financial creditors led by SBI, which has an exposure of ₹1,800 crore; followed by Central Bank at ₹816 crore, PNB at ₹743 crore, StanChart at ₹608 crore and DBS at ₹243 crore. Therefore, the resolution comes at over ₹60 percent haircut to the lenders.