Rajkotupdates.news Ruchi Soya to Be Renamed Patanjali Foods Company Board Approves Stock Surges

rajkotupdates.news : ruchi soya to be renamed patanjali foods company board approves stock surges

Spread the love

India’s prominent manufacturer of edible oils and soya foods, Ruchi Soya, has received board approval to rename itself as Patanjali Foods Company. This decision follows the acquisition of Ruchi Soya by Patanjali Ayurved, a consumer goods company specializing in natural and Ayurvedic products, in 2019. The announcement of the board’s approval caused a 10% surge in the company’s stock, highlighting the significance of this development with rajkotupdates.news : ruchi soya to be renamed patanjali foods company board approves stock surges.

Ruchi Soya, founded in 1986, is an Indian agri-food company renowned for its expertise in edible oils and soya foods. It holds a strong presence in the Indian market and stands as one of the largest edible oil manufacturers in the country. The company’s product portfolio encompasses various cooking oils, vanaspati, and soya foods.

In a regulatory statement released on Monday, the major edible oil producer Ruchi Soya announced its decision to change its name to Patanjali Foods Ltd. This change is subject to approval from the Registrar of Companies and other relevant entities. Ruchi Soya further stated that its board, during a meeting on April 10, granted in-principle approval to explore the most efficient means of enhancing synergies with Patanjali Ayurved Ltd. The company’s officials are authorized to finalize and execute any proposed transaction to rajkotupdates.news : ruchi soya to be renamed patanjali foods company board approves stock surges.

Here’s a 10-point summary of the key aspects related to this significant development:

  1. Ruchi Soya’s shares on the BSE nudged down by 0.74% to settle at ₹918.05. The stock reached an intraday high of ₹999, representing an increase of over 8%, before closing in the negative territory. On the NSE, it finished 0.56% lower at ₹918.25.
  2. After the shares were listed following the follow-on public offer (FPO), the stock experienced a surge of 12.94% on Friday.
  3. A BSE notice released on Thursday confirmed the listing and trading of 6,61,53,846 fully paid-up equity shares of ₹2 each of Ruchi Soya Industries from Friday, April 8, 2022.
  4. Earlier, Ruchi Soya had informed the stock exchanges on Tuesday about the approval of the allotment of 6,61,53,846 equity shares worth ₹4,300 crore in connection with the FPO.
  5. The FPO issue price for Ruchi Soya was fixed at ₹650 per share.
  6. The offer remained open between March 24 and March 28.
  7. However, in an unusual move, the Securities and Exchange Board of India (SEBI) instructed the bankers of the Patanjali group’s Ruchi Soya on March 28 to provide an option for investors to withdraw their bids in the FPO.
  8. SEBI also cautioned the company regarding the circulation of unsolicited SMS about the share sale.
  9. The FPO concluded on March 28, and the withdrawal window remained open for two days until March 30, as directed by SEBI.
  10. According to sources, nearly 97 lakh bids were withdrawn by FPO investors after SEBI’s directive to provide the withdrawal option for Ruchi Soya, as reported by news agency PTI.

Patanjali: A Brief Overview

Patanjali Ayurved, established in 2006 by Baba Ramdev and Acharya Balkrishna, is a consumer goods company renowned for producing natural and Ayurvedic products. Over the years, the company has expanded its product range to include personal care items, as well as food and beverages. Patanjali has gained significant market share in India and is recognized for its strong branding and emphasis on natural products.

Ruchi Soya Acquisition by Patanjali

In 2019, Patanjali Ayurved acquired Ruchi Soya for approximately 4,350 crore rupees (around $590 million). The acquisition was a strategic move by Patanjali to expand its business and diversify its product offerings. It also provided Patanjali with a strong foothold in the edible oil and soya foods market, which was previously dominated by Ruchi Soya.

Reasons for Renaming Ruchi Soya to Patanjali Foods Company

The decision to rename rajkotupdates.news : akash chopra says shreyas iyer could be a captain for kkr or rcb as Patanjali Foods Company serves several purposes. Firstly, it consolidates the Patanjali brand under a single identity, making it easier for consumers to recognize and remember the brand. Secondly, it aligns with Patanjali’s expansion strategy of diversifying its product portfolio and increasing its market share. Lastly, it enhances consumer perception of Ruchi Soya’s products by associating them with the trusted and well-established Patanjali brand.

Benefits of Renaming Ruchi Soya to Patanjali Foods Company

The renaming of Ruchi Soya to Patanjali Foods Company is expected to bring several advantages. Firstly, it will enhance brand recognition and recall for both Ruchi Soya and Patanjali, resulting in improved market positioning and an expanded customer base. Additionally, the synergy between the product offerings of Patanjali and Ruchi Soya is likely to create cross-selling opportunities and drive increased revenue for both companies.

Impact of the Renaming on Ruchi Soya’s Shareholders

The announcement of the board’s approval to rename Ruchi Soya as Patanjali Foods Company led to a surge in the company’s stock price. The stock rose by 10% after the news, indicating investor confidence in the new branding and the potential for increased revenue. Analysts predict that the renaming will result in improved market positioning, a larger customer base, and long-term benefits for Ruchi Soya’s shareholders.

Ruchi Soya Rallies as Company Board Supports Renaming to Patanjali Foods

Furthermore, the company is considering evaluating the most efficient method to enhance synergies with Patanjali Ayurved’s food portfolio. This has sparked speculation that Patanjali’s food business may merge with that of Ruchi Soya.

Following this development, shares of Ruchi Soya Industries rallied over 8% to reach Rs 999 on Monday before settling at Rs 988.80 at 9:35 am. On Friday, the stock closed at Rs 924.85.

In contrast, at the time of writing this report, the BSE Sensex was trading at 59,052, down by 395.18 points or 0.66%.

Market Reaction and Stock Increase

Investors have reacted favorably to the announcement of Patanjali Foods’ rebranding of Ruchi Soya, driving up the price of the company’s stock. The market’s favorable reaction reveals investors’ faith in Patanjali Ayurved and its capacity to spur development and innovation in the FMCG industry. The rebranding is viewed as a calculated attempt to strengthen Patanjali’s position in the market and take advantage of the rising demand for organic and Ayurvedic goods.

Additionally, this development shows investors’ confidence in Patanjali’s long-term goals and their confidence in the company’s ability to profit from new market trends. The broad distribution network and strong brand equity of Patanjali Ayurved would probably be crucial in extending Patanjali Foods’ market and boosting sales.

Future Prognosis

For both businesses, the change in name from Ruchi Soya to Patanjali Foods is a significant accomplishment. With this approach, Patanjali Ayurved hopes to increase consumer preference for natural and Ayurvedic goods while solidifying its position in the edible oil market. Patanjali Foods is well-positioned to foster innovation and broaden its product line by making use of the parent company’s well-established brand identification, distribution network, and vast research and development capabilities.

Customers are increasingly looking for items that fit with their environmentally and health-conscious lifestyles as the FMCG industry in India continues to change. Under the umbrella of Patanjali Ayurved, Patanjali Foods is prepared to satisfy these changing consumer demands. With the rebranding, the business makes it clear that it is dedicated to offering premium food products with Ayurveda inspiration that support overall wellbeing.


The renaming of Ruchi Soya to Patanjali Foods Company represents a significant milestone in Patanjali’s expansion plans and is expected to yield multiple benefits for both companies. By unifying the Patanjali brand and associating Ruchi Soya’s products with the trusted Patanjali name, the companies are positioned for increased revenue and market share in the years ahead that is reason you can explore more about rajkotupdates.news : ruchi soya to be renamed patanjali foods company board approves stock surges here.

For More Related Tropic Here:

rajkotupdates.news : ruchi soya to be renamed patanjali foods company board approves stock surges
rajkotupdates.news : akash chopra says shreyas iyer could be a captain for kkr or rcb
rajkotupdates.news : microsoft gaming company to buy activision blizzard for rs 5 lakh crore