Ruchi Soya to Acquire Patanjali’s Food Business, Name Change; Shares Zoom 8%

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Ruchi Soya to Acquire Patanjali’s Food Business, Name Change; Shares Zoom 8%

By Malvika Gurung

Investing.com -- The edible oil manufacturer Ruchi Soya (NS: RCSY ) has announced entering into an agreement with the parent company and conglomerate Patanjali Ayurved, to acquire the latter’s food retail business, along with some manufacturing plants located across the country.

The company has also informed that its board has decided to change its name from Ruchi Soya to ‘Patanjali Foods Ltd’, subject to regulatory and statutory approvals.

Shares of the edible oil manufacturer surged 7.7% to Rs 1,167.3 apiece at 2:55 pm.

According to the company’s exchange filing on Wednesday, its board of directors will acquire Patanjali Ayurved’s food retail business, comprising packaging, labelling, manufacturing and retail trading of certain food products, in addition to the manufacturing plants located at Haridwar, Padartha and Newasa.

The amount considered for acquisition stands at Rs 690 crore on a slump sale basis, and the whole process is estimated to be complete by July 15, 2022. Once the acquisition is completed, Ruchi Soya’s name will be changed to Patanjali Foods.

As per the filing, “The transaction shall consist of transfer of employees, assets (excluding Patanjali’s brand, trademarks, designs and copyrights), current assets (excluding debtors, vehicles, cash and bank balance) contracts, licenses and permits, distribution network, customers related to the Food Retail Business Undertaking of Patanjali Ayurved”.

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