Parent Company Patanjali Ayurved’s food business Transfer to Ruchi Soya, Patanjali Foods News
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Ruchi Soya Industries on Wednesday announced it will acquire Patanjali Ayurved’s food retail business for Rs 690 crore. The acquired food business comprises of 21 major products namely ghee, honey, spices, juices and atta, etc., the company informed in an exchange filing.
“The acquisition is valued at a Fair Market value (Net) of Rs 690 crore based on all the fixed assets of Food division & respective current assets on slump sale basis,” the company statement said.
Ruchi Soya will also get the manufacturing plants located at Padartha, Haridwar, and Newasa, Maharashtra. The company said that the Patanjali Ayurved Ltd’s Board has also approved this transfer of food business to Ruchi Soya with an effective date of May 09.
The company informed that the business transfer will be carried out in three tranches. In the first tranche, Rs 103,50,00,000/- (Rupees One Hundred Three Crores Fifty Lakhs only) for 15 per cent of the total purchase consideration shall be simultaneously paid with the execution of the business transfer agreement or within three days from the execution of the business transfer agreement.
In the next tranche, Rs 293,25,00,000/- (Rupees Two Hundred Ninety Three Crores Twenty Five Lakhs only) for 42.5 per cent of the total purchase consideration shall be paid on the closing date (defined under the business transfer agreement).
In the final phase, Rs 293,25,00,000/- (Rupees Two Hundred Ninety Three Crores Twenty Five Lakhs only) for the remaining 42.5 per cent of the total purchase consideration shall be paid within 90 days from the closing date.
The entire transaction is likely to be completed by July 15, 2022, the company statement said.
“This strategic initiative for acquisition of food business shall strengthen its food product portfolio with array of brands and also contribute to the growth in terms of revenue and EBIDTA,” the FMCG firm said.
Additionally, the company informed that its Board has approved the change in the name of the firm to “Patanjali Foods Limited”.
The shares of Ruchi Soya hit an upper circuit of 10 per cent on both BSE and NSE post the announcement and at the end of trade on Wednesday, the stock ended at Rs 1,191.30 apiece on the BSE and Rs 1,192.15 on NSE.
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