Ruchi Soya: the promoters of Ruchi Soya sell a 3.18% stake in the open market

New Delhi: bankruptcy-related Ruchi Soya's promoters sold 1.06 crore shares, valued at 3.18 percent, through open market operations, said the indebted edible oil mill in a registration application.

The promoter entity of Ruchi Soya, Disha Foundation Trust, sold these shares on 24 August.

After selling these shares, the interest of the promoters in the company dropped from 38.06 percent to 38.88 percent, according to the submission.

Ruchi Soya, who is undergoing insolvency proceedings, has a total debt of approximately Rs 12,000 crore. The company has many factories and its leading brands include Nutrela, Mahakosh, Sunrich, Ruchi Star and Ruchi Gold.

In December 2017, Ruchi Soya Industries closed the process of insolvency of companies (CIRP) and Shailendra Ajmera was appointed as the resolution professional (RP).

The appointment was made by the National Company Law Tribunal (NCLT) about the application of the creditors Standard Chartered Bank and DBS Bank, under the insolvency and bankruptcy law.

Last week, moneylenders from Ruchi Soya approved the Rs 6,000 crea bid from Adani Wimar to acquire the debt-ridden company for edible oil.

Adani group firm Adani Wilmar, who sells frying oil under the Fortune brand, and Baba Ramdev-led Patanjali are embroiled in an elongated struggle to take over Ruchi Soya.

Adani Wilmar's offer was approved by the Committee of Creditors (CoC) with approximately 96 percent votes in favor. The RP will now request approval from the NCLT.

While Adani Wilmar emerged as the highest bidder with Rs 6.000 crore offer, Patanjali group came in second with an Rs 5,700 crore bid.

Following this, Patanjali Ayurved had requested certain clarifications from Ruchi Soya's RP, including Adani Group's eligibility to participate in the bidding process.

It has also tried to know the parameters adopted by the RP to declare Adani Wilmar the highest bidder.

The Haridwar-based company also questioned the appointment of Cyril Amarchand Mangaldas as legal adviser to the RP because the law firm Adani Group already advised.

Patanjali was asked to submit a revised offer before June 16 to adjust or improve the highest offer of Adani Wilmar's Rs 6000 crore under the Swiss Challenge system adopted by the RP and the creditors' committee.

Patanjali, however, wrote to the RP for clarification rather than submitting a new bid.

Adani Wilmar was selected by the CoC after two rounds of bidding.

Patanjali has now challenged the CoC's decision in the NCLT, Mumbai.

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