Ruchi Soya is a company that operates in the Food Staples and Soyabean Products.
It was a loss making company that went bankrupt. The share prices fell to less than 4 rupees. The company went into debt resolution.
The total debt was around 12,000+ Crores. As per NCLT resolution, the company was eventually sold to Patanjali Ayurved for 4235 Crores. SBI provided Patanjli Ayurved with a loan of 3200 Crores to buy this company.
The banks had a claim of 8377 Crores, out of which NCLT accepted 4053 Crores. Unsecured creditors had a claim of 1007 Crores, out of which NCLT accepted 40 Crores.
Operational Creditors had a claim of 2716 Crores, NCLT accepted 90 Crores.
In the end banks got back just 54% of 4053 Crores.
Patanjali Ayurved pumped in 900 Crores to own 100% of the company which had a value of 12,000 odd Crores. Then the share prices started to rise. As of yesterday the share price stands at 1000+. The company went in for a follow up Share Issue and raised 4300 Crores. The promoter group liquidated 10% of their shares at 615-650 Price band. SBI was paid back its 3300 Crores which was the loan given to it.
Thus within three to four years, Patanjali managed to hold 80% of shares of the company, paid back 3300 Crores that it had taken as loan and also raised money at 615-650 price band of a share that was once trading at under four rupees per share.
For further reading, you must investigate the rise of share price from under four rupees to the current price. You will find that there was hardly any volume in the transactions and the share prices rose almost every trading day based on upper circuits that came into play.
But nobody is complaining. That is because those who got shares at 615-650 price band have now doubled their investment, as Baba had promised.
The only losers have been the original promoters, who got nothing, banks who got 2200 odd crores out of their claim of 8800 Crores out of which admitted claims were 4500 odd crores. The banks took a haircut, the unsecured creditors took a massive haircut as they got 90 Crores out of 1000+ Crores.
What is most interesting is that even Government of India lost revenue on this resolution. That means the money that we the people were supposed to get did not come to us, as government is us and we are the government. Recently a claim of 350 Crores of the Income Tax department was rejected by NCLT Board for being a delayed claim.
A slew of decisions, policy decisions, like banning the import of Palm Oil from Malaysia led to the rise of edible oil prices. What was selling at less than 130 Rupees in retail, today sells at almost 200 Rupees. And the major beneficiaries are Adani Wilmar, Ruchi Soya….
