Ruchi Soya, a big company in India that makes oils and soy foods, has gotten permission from its board to change its name to Patanjali Foods Company. This move comes after Patanjali Ayurved, a consumer goods company that makes natural and Ayurvedic products, bought Ruchi Soya in 2019.
The stock of the company went up 10% when the board’s approval was announced, which shows how important this change is with rajkotupdates. The board of the company that makes Ruchi soya has agreed to change its name to Patanjali Foods.
Ruchi Soya is an Indian agri-food company that has been around since 1986. It is well known for its skill in edible oils and soya foods. It has a strong influence on the Indian market and is one of the biggest companies in India that makes edible oil. The company makes cooking oils, vanaspati, and soya foods, among other things.
In a statement to the government made on Monday, Ruchi Soya, a large company that makes edible oils, said it would change its name to Patanjali Foods Ltd. This change will only happen if the Registrar of Companies and other related groups agree to it.
Ruchi Soya also said that its board gave in-principle approval at a meeting on April 10 to look into the best ways to improve relations with Patanjali Ayurved Ltd. Officials of the company are allowed to finalize and carry out any planned transaction to rajkotupdates.news: Ruchi soya will be renamed patanjali foods.
Here’s a 10-Point Summary of The Key Aspects Related to This Significant Development:
- 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.
- After the shares were listed following the follow-on public offer (FPO), the stock experienced a surge of 12.94% on Friday.
- 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.
- Earlier, Ruchi Soya 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.
- The FPO issue price for Ruchi Soya was fixed at ₹650 per share.
- The offer remained open between March 24 and March 28.
- 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.
- SEBI also cautioned the company regarding the circulation of unsolicited SMS about the share sale.
- The FPO concluded on March 28, and the withdrawal window remained open for two days until March 30, as directed by SEBI.
- 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
Baba Ramdev and Acharya Balkrishna started Patanjali Ayurved in 2006. It is a consumer goods company that is known for making natural and Ayurvedic items. Over time, the company has added food and drinks as well as products for personal care to its list of goods. Patanjali has a big share of the Indian market and is known for its strong brand and focus on natural goods.
Ruchi Soya Acquisition by Patanjali
Patanjali Ayurveda bought Ruchi Soya in 2019 for about 4,350 crore rupees, which is about $590 million. Patanjali made the purchase as a strategic move to grow its business and give a wider range of products. It also gave Patanjali a strong foothold in the market for edible oils and soya foods, which had been controlled by Ruchi Soya.
Why Ruchi Soya should be changed to Patanjali Foods Company
Changing the name of rajkotupdates.news: Akash Chopra says that Shreyas Iyer could be captain for either KKR or RCB because Patanjali Foods Company can be used for many things. First, it gives the Patanjali brand a single name and logo, which makes it easier for people to know and remember. Second, it fits with Patanjali’s plan for growth, which is to increase its market share and offer a wider range of products. Lastly, it makes people think more highly of Ruchi Soya’s products by linking them to the well-known and trusted Patanjali name.
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 Rub 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
When the board decided to change the name of Ruchi Soya to Patanjali Foods Company, the stock price of the company went up.
After the news, the stock went up by 10%, which showed that investors were optimistic about the new branding and the possibility of more money coming in. Analysts think that changing the name will help Ruchi Soya’s marketplace, bring in more customers, and have long-term benefits for its shareholders.
Ruchi Soya Rallies and the Company Board Backs Changing the Name to Patanjali Foods
Also, the company is thinking about figuring out the best way to improve ties with Patanjali Ayurveda’s food line. Some people think that this means Patanjali’s food business might join with Ruchi Soya’s.
As a result of this news, shares of Ruchi Soya Industries went up by more than 8% on Monday, reaching Rs 999 before finishing at Rs 988.80 at 9:35 am. The stock ended trading on Friday at Rs 924.85.
When this story was written, the BSE Sensex was trading at 59,052, which was down by 395.18 points, or 0.6%.
Market Reaction and Stock Increase
Investors liked the news that Patanjali Foods would change the name of Ruchi Soya, which drove up the price of the company’s stock. The market’s positive response shows that investors believe in Patanjali Ayurved and its ability to help the FMCG business grow and change. People think that Patanjali’s rebranding was a calculated move to strengthen its marketplace and take advantage of the growing demand for organic and Ayurvedic products.
This also shows that investors have faith in Patanjali’s long-term goals and in the company’s ability to make money off of new market trends. Patanjali Ayurved’s wide distribution network and strong brand value would likely be key to growing Patanjali Foods’ market and sales.
Future Prognosis
The name change from Ruchi Soya to Patanjali Foods is a big step forward for both businesses. Patanjali Ayurved hopes that this strategy will make people like natural and Ayurvedic products more, while also strengthening its place in the market for edible oils. Patanjali Foods is in a good situation to encourage new ideas and grow its product line by using the well-known brand name, distribution network, and large research and development capabilities of its parent company.
As the FMCG business in India continues to change, customers are looking for more products that fit their lifestyles and are good for the environment and their health. Patanjali Foods is ready to meet these changing customer needs. It is part of Patanjali Ayurved. With the rebranding, the company makes it clear that it is committed to making high-quality food products that are based on Ayurveda and help improve general health.
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Conclusion
The change of name from Ruchi Soya to Patanjali Foods Company is a big step in Patanjali’s plans to grow, and both businesses should benefit from it in many ways. By unifying the Patanjali brand and associating Ruchi Soya’s products with the trusted Patanjali name, the companies are set up for more sales and market share in the years to come. You can learn more about rajkotupdates. news: Ruchi soya to be renamed patanjali foods company board approves stock surges here.