- Last year, Baba Ramdev’s Patanjali bought bankrupt Ruchi Soya for Rs 4,350 crore (or about $560 million).
- Ruchi Soya in a notice to its shareholders’ sought approval for the onboarding of Ram Bharat in the company.
- Meanwhile, Baba Ramdev has also joined the board of the company.
Yoga guru Swami Ramdev, also known as Baba Ramdev, his younger brother Ram Bharat, and Chairman Acharya Balkrishna, soon will be joining the board of recently acquired Ruchi Soya Industries Ltd.
Ruchi Soya, India’s largest edible oil manufacturer, in a notice to its shareholders, sought approval for the onboarding of the new members in the company.
In December 2019, Patanjali Ayurved completed the acquisition of bankrupt Ruchi Soya Industries for Rs 4,350 crore (or about $560 million).
Following the acquisition of Ruchi Soya by a consortium of Patanjali Ayurved Limited, Divya Yog Mandir Trust, Patanjali Parivahan Private Limited, and Patanjali Gramudhyog, in insolvency proceedings last year, the new management got right to appoint the board, the notice said.
Now the shareholders’ approval is being sought for the appointment of Ram Bharat, as the managing director of Ruchi Soya, with an annual salary of Re 1, the notice added.
The notice also sought for the appointment of Baba Ramdev as the director on the company board.
“The board of directors of the company at its meeting held on August 19, 2020, appointed Shri Ram Bharat as managing director of the company with effect from August 19, 2020, to December 17, 2022, and his designation was changed from whole-time director to managing director,” it said.
Also, Acharya Balkrishna has been re-designated as Chairman of the company with an annual salary of Re 1.
Besides, Girish Kumar Ahuja, Gyan Sudha Misra, and Tejendra Mohan Bhasin are being appointed as independent directors on the company board.
With more than 50% market share, The company has been India’s largest edible oil manufacturer. The two vanaspati brands, Nutrigold and Ruchi No. 1 are regional leaders in their respective categories.
In December 2017, Ruchi Soya entered into the National Company Law Tribunal (NCLT) ordered the start of insolvency proceedings against the company to recover unpaid loans.
In December 2019, Patanjali successfully acquired Ruchi Soya Industries for Rs 4,350 crore, out of which Rs 4,235 crore was paid to creditors.
The remaining Rs 115 crore was used for capital expenditure and working capital requirements of the company.
On January 24, 2020, The company got listed on NSE (National Stock Exchange) at the price of Rs 100 per share. Within six months, the stock price soared to Rs 1,519 per share.
Earlier this month, Ruchi Soya announced that the company is planning to launch FPO (Follow on Public Offer) next year to bring down promoters’ shareholding in the company.
with inputs from PTI (Press Trust Of India)