Ruchi Soya Industries Ltd shares bounced 10 per cent on Wednesday after its board approved the acquisition of Patanjali Ayurved's food retail business.
The Board of Directors of Ruchi Soya decided to change the company's name to 'Patanjali Foods Limited' and approved a proposal to acquire Patanjali Ayurved Limited's food retail business for Rs 690 crore.
On the BSE, the stock jumped 9.59 per cent to close at Rs 1,186.85, after rallying 10 per cent to Rs 1,191.30 during the session.
On the NSE, it jumped 9.99 per cent to finish at Rs 1,192.15.
Ruchi Soya is a part of yoga guru Baba Ramdev-led Patanjali Group. Patanjali acquired Ruchi Soya Industries Limited through an insolvency process in 2019.
The Ministry of Corporate Affairs has confirmed the availability of the name Patanjali Foods Limited. So the company won't find any major hurdle in the name change process.
In a regulatory filing, Ruchi Soya said it has entered into a "Business Transfer Agreement" with Patanjali Ayurved to acquire the food retail business of the latter as a going concern on a slump sale basis.
The food retail business of Patanjali Ayurved consists of manufacturing, packaging, labelling and retail trading of certain food products along with manufacturing plants located at Padartha, Haridwar, and Newasa, Maharashtra.
Indeed, the acquired food business comprises 21 major products: ghee, honey, spices, juices, and atta.
The acquisition is valued at a fair market value (net) of ₹ 690 crore based on all the fixed assets of the food division and respective current assets on a slump sale basis, Ruchi Soya said in a statement.
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