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Edible Oil company Ruchi Soya Industries has said that its name has been changed to Patanjali Foods Ltd. w.e.f. 24th June.
Ruchi Soya started its operations in 1986 in Indore and it produced edible oil, soy foods, Vanaspati, and Lecithin, where edible oil and soya foods formed a major part of its revenues. It managed brand names like Nutrela, Sunrich, and Mahakosh.
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The company had 6000+ distributors, 7 lakh+ retail stores, and produced 3 million tonnes of oil per year as the company maintained strong profitability till 2015. However, crop failure in India and taxation in Indonesia led to the company suffering losses.
Its margins were declining as it saw hefty losses in the castor oil business. Soon, the company had net losses on its Balance Sheet and debt was piling up. Banks had to write off a majority of the debt while the balance was in the process of being recovered.
They dragged the company to insolvency court where the company was declared insolvent and was set to be sold to interested parties. Patanjali acquired the company and began revamping its operations. Under new management, the company relisted on the bourses.
In a regulatory filing, Ruchi Soya informed that it had received an email from the MCA which mentioned that a fresh 'Certificate of Incorporation pursuant to a change of name' dated June 24, 2022, was issued by the RoC, Maharashtra, Mumbai. Ruchi Soya is filing the required documents in respect of the name change with the stock exchanges separately.
The company relisted on 27th January 2020 at Rs 16.50 per share after which the stock kept jumping up consistently. It hit a lifetime high of Rs 1,519.65 per share on 25th June 2020, growing almost 9,000% in 5 months!!
However, the stock began falling after that as it lost more than half its value by the end of 2020 when it closed at Rs 674.25 per share. 2021 saw some recovery for the stock as it went above Rs 1,000 per share during the year as it closed at Rs 1,094.30 per share yesterday.
Article by Aman Agarwal.
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