New Delhi, Dec 19: Debt-ridden Ruchi Soya’s resolution is complete with Yoga guru Baba Ramdev’s Patanjali Ayurved depositing Rs 1,100 crore equity in a State Bank of India (SBI) escrow account to acquire the edible oil maker for Rs 4,350 crore.
Patanjali completed the payment to lenders on Wednesday. The remaining money will be paid through bank loans.
In April, Patanjali had received approval of financial creditors to acquire Ruchi Soya. The National Company Law Tribunal (NCLT) gave its approval to the resolution plan in early September.
Sources said Patanjali has settled Rs 4,350 crore of dues Ruchi Soya had towards financial creditors by infusing Rs 1,100 crore equity and arranging another Rs 3,250 crore via debt.
The acquisition will help Patanjali acquire edible oil plants and soyabean oil brands like Mahakosh and Ruchi Gold.
Out of the Rs 4,350 crore offered by Patanjali group, Rs 4,235 crore will be utilised to pay creditors while Rs 115 crore will be used for capital expenditure and working capital requirements of Ruchi Soya.
Ruchi Soya is the second big insolvency case to be completed this week. The world’s largest steelmaker ArcelorMittal and Japan’s Nippon Steel on Monday completed the acquisition of Essar Steel for Rs 42,000 crore.
Patanjali Ayurved is a consumer goods company with manufacturing units at Haridwar in Uttarakhand. It manufactures mineral and herbal products.
(ANI)
