Rajkotupdates.news : Ruchi Soya To Be Renamed Patanjali Foods Company Board Approves Stock Surges: Ruchi Soya, a company acquired by Patanjali Ayurved, set to renamed Patanjali Foods Company.
The company’s board has approved the renaming, which has led to a surge in the company’s stock prices.
This move expected to strengthen the brand identity of Patanjali Ayurved, which is known for its focus on natural and Ayurvedic products.
Table of Contents
Background information
Ruchi Soya Industries Limited is India’s leading manufacturer of edible oils, soya food, and personal care products.
The company was founded in 1986 and has its headquarters in Indore, Madhya Pradesh.
In December 2017, Ruchi Soya was acquired by Patanjali Ayurved, a fast-growing Indian consumer goods company that specializes in Ayurvedic and natural products.
Patanjali Ayurveda gained Ruchi Soya through the insolvency resolution and took over its assets, liabilities, and operations.
The acquisition of Ruchi Soya was a significant milestone for Patanjali Ayurveda.
It helped the company diversify its product portfolio and expand its presence in the edible oils and soya food segments.
Additionally, it helped Patanjali Ayurved consolidate its position as one of India’s fastest-growing FMCG (Fast-Moving Consumer Goods) companies.
Ruchi Soya Acquisition by Patanjali
Ruchi Soya Industries Ltd, an Indian edible oil and soya foods company, was acquired by Patanjali Ayurveda Limited, a consumer goods company, in 2019.
Patanjali Ayurveda received Ruchi Soya through the insolvency resolution process under the Insolvency and Bankruptcy Code.
The acquisition was a significant move for Patanjali Ayurveda, as it helped the company diversify its product portfolio and expand its reach in the Indian market.
With the acquisition of Ruchi Soya, Patanjali Ayurveda became India’s most significant packaged edible oil player, with a market share of around 20%.
Under the acquisition agreement, Patanjali Ayurveda agreed to pay a total consideration of Rs 4,350 crore ($616 million) to acquire Ruchi Soya.
This included an upfront payment of Rs 4,053 crore and additional deferred care of Rs 297 crore, which would be paid over a while.
The acquisition was approved by the National Company Law Tribunal (NCLT), a quasi-judicial body adjudicating insolvency proceedings in India.
The NCLT also supported the resolution plan submitted by Patanjali Ayurveda, paving the way for the acquisition to be completed.
With the acquisition of Ruchi Soya, Patanjali Ayurveda has further strengthened its position in the Indian consumer goods market and is expected to continue expanding its product range in the coming years.
Patanjali’s focus on natural and Ayurvedic products
Patanjali Ayurved Limited has a strong focus on natural and Ayurvedic products.
Ayurveda is an ancient Indian system of medicine that emphasizes a holistic approach to health and wellness, using natural ingredients and remedies to promote physical, mental, and spiritual well-being.
Patanjali offers a wide range of natural and Ayurvedic products, including personal care items, health supplements, herbal medicines, and food products.
These products are made from natural ingredients and marketed as free from harmful chemicals and additives.
Patanjali’s emphasis on natural and Ayurvedic products has resonated with consumers in India and abroad, as there is a growing demand for safe, healthy, and environmentally friendly products.
The company’s products are also competitively priced, making them accessible to a broader audience.
Overall, Patanjali’s focus on natural and Ayurvedic products has helped the company carve out a unique niche in the consumer goods industry and has contributed to its rapid growth and success.
Reasons behind the renaming of the company
The objective behind renaming Ruchi Soya as Patanjali Foods Company is to reinforce the brand identity of Patanjali Ayurved.
By rebranding Ruchi Soya, Patanjali Ayurveda seeks to bring all its food and edible oil products under a single brand umbrella.
This move will help the company streamline its operations and improve its marketing efforts.
Moreover, Patanjali Ayurved is known for its focus on natural and Ayurvedic products, and the renaming of Ruchi Soya aligns with this philosophy.
The new name, Patanjali Foods Company, is expected to help promote its natural and Ayurvedic products and appeal to health-conscious consumers who prefer natural and organic products.
Overall, renaming Ruchi Soya to Patanjali Foods Company is a strategic move to strengthen Patanjali Ayurved’s brand identity and promote its natural and Ayurvedic product offerings.
The approval by the board
Approval process by the board
Patanjali Foods Company approved renaming Ruchi Soya as the company’s board of directors.
The board members reviewed and evaluated the proposal for renaming the company and its potential impact on its business and brand identity.
After conducting a thorough analysis and considering various factors, such as the company’s existing brand image and market positioning, the board approved renaming Ruchi Soya as Patanjali Foods Company.
The decision was made after due deliberation and with the consensus of the board members.
Once the board approved the renaming proposal, the company initiated implementing the change.
This involved updating the company’s legal documents, branding and marketing materials, and other relevant materials to reflect the new name.
Ruchi Soya’s rebranding to Patanjali Foods Company was finalized upon securing regulatory approvals and implementing necessary operational and branding changes.
Significance of the board’s approval
The board’s approval for renaming Ruchi Soya as Patanjali Foods Company is significant for several reasons:
It mandates the company’s management to proceed with the renaming process.
The board’s approval is a critical step in rebranding the company, and it provides the necessary direction and support to carry out the renaming process effectively.
It signals the board’s confidence in the company’s management and strategic vision.
The committee’s approval of the renaming proposal indicates that the board members aligned with the company’s strategic direction and support its efforts to strengthen its brand identity and promote its natural and Ayurvedic products.
It has a positive impact on the company’s image and reputation. However, the board’s approval of the renaming proposal will likely view positively by the company’s stakeholders, including customers, investors, and employees.
By taking proactive measures to improve its brand identity and market positioning, the company conveys a message of dedication to its growth.
It has a direct impact on the company’s financial performance. But the renaming of the business expected to positively impact the company’s stock prices and overall financial performance.
However, the approval by the board is likely to view as a positive development by investors, leading to an increase in demand for the company’s stock and potentially resulting in higher stock prices.
Benefits of Renaming Ruchi Soya to Patanjali Foods Company
The renaming of Ruchi Soya Industries Ltd to Patanjali Foods Company after its acquisition by Patanjali Ayurveda Ltd can have several benefits for the company:
Brand recognition: Patanjali Ayurveda is a well-known and trusted brand in India with a loyal customer base.
Renaming Ruchi Soya to Patanjali Foods Company will help the company leverage the brand recognition and trust of Patanjali Ayurveda and establish itself as a trusted player in the food industry.
Synergy in product portfolio: Patanjali Ayurveda has a strong portfolio of products in the food and personal care segments.
By renaming Ruchi Soya to Patanjali Foods Company, the company can leverage its product portfolio’s synergies and offer its customers a more comprehensive range of food products.
Streamlined marketing and distribution: By renaming Ruchi Soya to Patanjali Foods Company, the company can streamline its marketing and distribution efforts by aligning them with Patanjali Ayurveda’s.
This can lead to more effective and efficient distribution of the company’s products.
Improved brand recall: Renaming Ruchi Soya to Patanjali Foods Company can improve brand recall among customers familiar with the Patanjali brand.
This can help the company establish a more substantial presence in the market and increase its market share.
Overall, renaming Ruchi Soya to Patanjali Foods Company can help the company leverage the strengths of the Patanjali brand and establish itself as a trusted player in the food industry.
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Patanjali Foods, the company owned by Baba Ramdev’s Patanjali Ayurveda, has announced a regulatory disclosure regarding a name change.
According to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Ministry of Corporate Affairs informed Patanjali Foods via email that a new “Certificate of the merger due to a name change” issued on June 24, 2022.
The company’s name changed from “RUCHI SOYA INDUSTRIES LIMITED” to “PATANJALI FOODS LIMITED,” effective June 24, 2022.
The necessary paperwork for the name change submitted to the Stock Exchanges.
Additionally, in 2019, Patanjali Ayurveda acquired Ruchi Soya for ₹4,350 crore through an insolvency process.
Recently, Patanjali Ayurved Ltd sold its retail food segment to its affiliate, Ruchi Soya Industries Ltd, for ₹690 crores to concentrate on its core businesses in non-food, traditional medicine, and wellness.
Ruchi Soya was able to raise ₹4,300 crore in a follow-on public offering (FPO) to settle outstanding debts.
The share price of Ruchi Soya on NSE is currently attractive.
Impact of the Renaming on Ruchi Soya’s Shareholders
The renaming of Ruchi Soya Industries Ltd to Patanjali Foods Company after its acquisition by Patanjali Ayurveda Ltd may have some impact on the company’s shareholders, as follows:
Change in stock ticker: The company’s renaming may change its stock ticker symbol. Shareholders must update their records accordingly and keep track of any changes in the stock ticker symbol.
Potential impact on share price: The renaming of the company may impact the share price of Ruchi Soya Industries Ltd, especially in the short term.
The level of impact will depend on several factors, such as the market’s perception of the new name, the brand recognition of Patanjali Ayurveda, and the overall market conditions.
Alignment with Patanjali Ayurveda’s vision: The renaming of Ruchi Soya to Patanjali Foods Company signals a strategic shift towards aligning the company’s vision with that of Patanjali Ayurveda.
Shareholders who believe in the vision and direction of Patanjali Ayurveda may perceive this positively and be more likely to hold on to their shares.
Integration of operations: The company’s renaming may signal a deeper integration of functions between Ruchi Soya and Patanjali Ayurveda.
This may result in cost synergies and operational efficiencies, which could benefit shareholders in the long run.
Overall, the impact of the renaming of Ruchi Soya Industries Ltd to Patanjali Foods Company on its shareholders will depend on various factors.
However, the company’s efforts to align its vision with Patanjali Ayurveda’s may signal a positive direction, potentially benefiting its shareholders in the long run.
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The stand-alone net profit of Ruchi Soya Industries Ltd. decreased by 25% to Rs. 234.33 crores in March 2022, compared to the same period last year.
However, the company’s overall revenue increased to ₹6,676.19 crores in the fourth quarter, up from ₹4,859.5 crores in the previous year.
In the fiscal year 2021-2022, the company’s net profit grew from Rs. 680.77 crore to Rs. 806.3 crore, while its total earnings increased to ₹24,284.38 crore from ₹16,382.97 crore in the previous year.
The positive aspects have contributed to the increased confidence of traders in the Ruchi Soya stock price.
The company distributes its products under various brand names, generates eco-friendly wind energy, and cultivates oil palm plantations.
It is worth noting that the company’s board has approved a name change to Patanjali Foods Company.
Before investing in the company’s shares, gathering more information about NSE: Patanjali recommended.
Stock surges
Impact of the approval on the company’s stock prices
The acceptance of the renaming proposal by the board of Ruchi Soya to Patanjali Foods Company has significantly impacted the company’s stock prices.
The announcement of the board’s approval received positively by investors, leading to an increase in demand for the company’s stock.
The day after the announcement of the board’s approval, Ruchi Soya’s stock price surged by over 5%.
This increase driven by investor confidence in the company’s strategic vision and the potential for renaming to strengthen the company’s brand identity and market positioning.
It anticipated that the financial performance of the company will experience a positive impact as a result of the renaming of Ruchi Soya to Patanjali Foods Company.
By consolidating its food and edible oil products under a single brand umbrella.
The company will likely improve its marketing efforts and appeal to health-conscious consumers who prefer natural and organic products.
This expected to translate into increased demand for the company’s products and potentially higher revenues and profits.
Overall, investors have viewed the board’s approval for renaming Ruchi Soya to Patanjali Foods Company positively, which will likely positively impact the company’s stock prices and financial performance.
Data and statistics to support the surging of the company’s stock prices
In the last year, Ruchi Soya’s stock prices have shown a consistent upward trend, with some fluctuations.
As of the end of September 2021, Ruchi Soya’s stock price was INR 1,476.55.
However, following the board’s approval for the company’s renaming, the stock price surged by over 5% on the next trading day.
This surge in stock price indicates that investors reacted positively to the news of the renaming proposal and the board’s approval.
The fact that investors have trust in the company’s strategic vision and view the rebranding as a means to enhance the company’s financial performance potentially.
Various factors, including market conditions, industry trends, and macroeconomic factors, can influence stock prices.
Therefore, it’s essential to consider a range of factors when assessing the impact of the board’s approval on the company’s stock prices.
Ruchi Soya FPO
Ruchi Soya is an Indian edible oil and soya foods company listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
The company’s initial public offering (IPO) was in 1986.
In 2019, Patanjali Ayurveda, a consumer goods company, acquired Ruchi Soya. After the acquisition, Patanjali Ayurveda decided to bring Ruchi Soya back to the public market through a follow-on public offering (FPO).
The Ruchi Soya FPO launched in January 2020 with a price band of Rs 29-30 per share. The FPO aimed to raise Rs 4,300 crore ($607 million) by issuing new equity shares.
The FPO received a strong response from investors, with the issue oversubscribed more than 5 times.
The shares finally priced at Rs 33 per share, which was at the upper end of the price band.
The proceeds from the FPO intended to use by Ruchi Soya for debt repayment and general corporate purposes.
On Friday, Ruchi Soya, an Indian company that produces edible oil and soya foods, declared that it had cleared loans worth Rs 2,925 crore with banks and is currently a debt-free entity.
This achievement follows the company’s successful follow-on public offering (FPO), which garnered Rs 4,300 crore.
According to a tweet by Acharya Balkrishna, the managing director of Patanjali Ayurveda Ltd, Ruchi Soya is now free from all outstanding debt.
The primary purpose of the funds raised through the FPO was to pay off debts and meet general corporate expenses.
The high investor interest in the FPO resulted in the oversubscription of the offering by over five times, with the shares priced at Rs 33 per share, which was at the upper end of the price range.
With the repayment of its debts and a solid financial standing, Ruchi Soya poised for growth and expansion in the Indian market.
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Ruchi Soya Industries Ltd., a leading FMCG company in India, set to rename Patanjali Foods Company.
- The company’s board has permitted the name change, which expected to reflect the company’s association with Patanjali Ayurved Limited, a well-known Indian FMCG company.
- Ruchi Soya Industries Ltd. known for distributing its products under various brand names, including Ruchi Gold, Mahakosh, Sunrich, Nutrela, Ruchi Star, and Ruchi Sunlight.
- The company also generates eco-friendly wind energy and cultivates oil palm plantations.
- Ruchi Soya Industries Ltd. reported a 25% decline in standalone net profit in March 2022 compared to last year, amounting to Rs. 234.33 crores.
- However, the company’s overall revenue increased to ₹6,676.19 crores in the fourth quarter, up from ₹4,859.5 crores in the previous year.
- In the fiscal year 2021-2022, the company’s net profit grew from Rs. 680.77 crore to Rs. 806.3 crore, while its total earnings increased to ₹24,284.38 crore from ₹16,382.97 crore in the previous year.
- The company’s positive aspects have contributed to increased confidence among traders, leading to a surge in the Patanjali share price NSE.
- Before investing in the company’s shares, gathering more information about NSE: Patanjali recommended.
- The name change to Patanjali Foods Company expected to boost further the company’s reputation and growth prospects in the Indian FMCG market.
Conclusion
key points
The article discusses the renaming of Ruchi Soya to Patanjali Foods Company and the company’s board of directors’ approval of the renaming proposal.
The renaming part of Patanjali Ayurved’s efforts to consolidate and strengthen its brand identity and promote its natural and Ayurvedic products.
The board’s approval of the renaming proposal is significant as it provides a clear mandate for the company’s management to proceed with the renaming process, signals the board’s confidence in its strategic vision, and positively impacts its image and reputation.
The approval has also positively impacted the company’s stock prices, with the stock price surging by over 5% following the approval announcement.
The renaming expected to positively impact the company’s financial performance by improving its marketing efforts and appealing to health-conscious consumers who prefer natural and organic products.
Potential impact of the renaming on the company’s prospects
There are various ways in which the rechristening of Ruchi Soya as Patanjali Foods Company can positively impact the company’s prospects.
Strengthening of Brand Identity: The renaming part of Patanjali Ayurved’s efforts to consolidate and strengthen its brand identity, which expected to improve brand recognition and awareness among consumers.
This will likely increase demand for the company’s products and potentially higher revenues and profits.
Expansion into New Markets: Patanjali Ayurved has a strong presence in the Indian market, and the renaming expected to facilitate the company’s growth into new markets, including international markets.
Consolidating the company’s food and edible oil products under a single brand umbrella expected to improve its marketing efforts and appeal to health-conscious consumers who prefer natural and organic products.
Diversification of Product Portfolio: Patanjali Ayurved has been expanding its product portfolio.
The renaming expected to support this effort by consolidating the company’s food and edible oil products under a single brand.
This will likely lead to improved product offerings and potentially higher sales and profits.
Better Market Positioning: The company’s renaming expected to improve its market positioning by allowing it to better compete with other natural and organic food companies.
This will likely increase brand recognition and consumer awareness, increasing demand for the company’s products.
Overall, renaming Ruchi Soya to Patanjali Foods Company can positively impact its prospects by strengthening its brand identity, expanding into new markets, diversifying its product portfolio, and improving its market positioning.
FAQs- Rajkotupdates.news : Ruchi Soya To Be Renamed Patanjali Foods Company Board Approves Stock Surges
1. How to buy Ruchi Soya IPO online?
To buy Ruchi Soya IPO online, you need to follow these steps:
- The first step is to make a Demat account with an authorized stockbroker.
- Check if the stockbroker has the Ruchi Soya IPO listed on their platform.
- If yes, log in to your account and bid for the IPO shares.
- Enter the quantity of shares you want to buy and the price you will pay.
- Confirm your request and make the payment online.
- Once the IPO allotted, the shares will credit to your Demat account.
- You can then sell or hold the shares based on your investment strategy.
Note: It’s essential to read and understand the prospectus and other relevant documents before investing in any IPO.
Additionally, consulting a financial advisor before making investment decisions recommended.
2. Is Ruchi Soya listed in NSE?
Ruchi Soya Industries Limited listed on India’s National Stock Exchange (NSE). Its stock ticker symbol is “RUCHISOYA”.
3. Can I buy Ruchi Soya IPO?
The availability of Ruchi Soya’s IPO for purchase depends on various factors, such as the opening and closing dates of the IPO, subscription status, and allocation of shares.
If the IPO is still open for subscription, and you have a Demat account with a registered stockbroker, you can place a bid to buy Ruchi Soya’s IPO shares online.
However, reading and understanding the prospectus and consulting a financial advisor before making investment decisions is essential.
4. What is the rename of Ruchi Soya’s share?
There has been no recent renaming of Ruchi Soya’s share. Its stock ticker symbol on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) in India is still “RUCHISOYA.”
However, in 2020, Ruchi Soya acquired by Patanjali Ayurved Limited, and since then, there have been changes in the company’s ownership and management.
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