Ruchi Soya’s FPO may be postponed further. It was supposed to arrive only in October last year… so where is the car getting stuck? Read this full story to know
Yoga guru Baba Ramdev might not have thought that he would ever have to deal with the ruckus of the stock market. Ruchi Soya (Ruchi Soya) These days they are so entangled in the affair that it does not seem to be settled by any yoga. Well, now closing the riddles and coming straight to the issue, then the matter is that Baba Ramdev (Baba Ramdev) of the company Ruchi Soya’s follow-on public offer ie FPO It is not able to launch even after all the efforts. Now the news is coming that its date can probably go further. The company wanted to bring it in October last year, but till now the company’s plan could not be implemented. Actually, Ruchi Soya wants to issue new shares through its follow-on public offer.
Now you must be thinking that what is the problem with this? Let’s learn about it…
- The reason is that the demand for the shares of Ruchi Soya is low and due to this the company is not able to bring FPO. Due to this tension has increased for Baba Ramdev too. The issue is that as per SEBI rules, Ruchi Soya has to take its public shareholding above 10 per cent.
- Presently the public shareholding in the company is 1.1 percent. Now the promoters of the company chose the FPO route for this, the promoters were planning that they would repay the loans of the banks with the amount received from the FPO, but, according to the news, there is no demand for the issue of the company.
- It is believed that if this issue does not come, then the company can withdraw its documents deposited with SEBI. In June last year, the company had submitted documents to SEBI, later it got approval from SEBI to bring the issue.
- Now investors are feeling that the valuation of Ruchi Soya is high and because of this they are not showing interest in the company’s FPO, well… only time will tell how Baba Ramdev will come out of this difficulty.
- Companies sell their shares in the market for the first time through IPO, but when a company is already listed in the market, it sells its stock by issuing FPO. Through this you can buy the stock of any company. However, only a very nominal 100 or 200 shares of a company can be bought in this.
— Money9 (@Money9Live) February 11, 2022
The only difference between IPO and FPO is that in FPO (Follow on Public Offer) already listed companies sell some of their stocks. At the same time, in IPO, companies get themselves listed in the stock market and offer to sell their stocks to the investors.