The board of directors of the business has changed the name of Ruchi Soya to Patanjali Foods Limited. The Patanjali brand’s dominance in the edible oil market will be strengthened by this name change, which will also make Ruchi Soya a significant player in the food industry. The blog examines the reasons for the name change and how it will affect the business and the edible oil market in India.
rajkotupdates.news: Ruchi Soya To Be Renamed Patanjali Foods Company Board Approves Stock Surges. Ruchi Soya, a leading edible oil manufacturer with a presence in more than 20 countries was acquired by Patanjali Ayurved Limited in 2019 by a bankruptcy process.
The board of directors has approved the name change and the stocks of Ruchi Soya have surged in response to this news. In this blog, we will review the reason behind the change in name and its impact on the company. So let’s dive in.
Brief Review of Ruchi Soya Deal With Patanjali
Baba Ramdev and Acharya Balkrishna launched Patanjali Ayurved, a significant producer of Ayurvedic medicines and consumer items, in 2006. Patanjali Ayurveda took a big step by purchasing Ruchi Soya since it gave the company a platform to grow its market share in the edible oil sector.
The company had long been considering entering the edible oil sector, and Ruchi Soya’s acquisition allowed it to do so with the help of an established brand.
The meeting for BSE filing was held on April 10 and in this filing, the company stated:
“The Board of Directors has resolved to alter the company’s name to Patanjali Foods Limited or any other name that the Registrar of Companies, Maharashtra, Mumbai, may deem appropriate, subject to all other required approvals”.
Additionally, according to Ruchi Soya, the board gave its preliminary approval for any arm’s-length measure that would increase synergies with Patanjali Ayurved Limited’s food portfolio. The board also authorized the company’s staff to negotiate, settle, implement, and deliver the terms and conditions of the proposed acquisition to maximize synergies with Patanjali Ayurved.
The recent FPO for Ruchi Soya was 3.6 times oversubscribed. On the final day, bids were received for 17.56 crore equity shares as opposed to the size of 4.89 crore equity shares. 90% of the retail quota, which makes up 35% of the issuance, was subscribed to.To raise Rs 4,300 crore, the major producer of food and oil goods started its FPO on March 24. For the public offering, the business established a price range of Rs. 615-650.
What is the Need to Change the Name?
Rajkotupdates.news: Ruchi Soya To Be Renamed Patanjali Foods Company Board Approves Stock Surges. This decision to rename Ruchi Soya as Patanjali Foods Limited was made for several reasons.
The primary reason was to align the company’s branding with Patanjali Ayurved’s brand. Patanjali Ayurved is a well-known brand in India, and the company has built a strong reputation for its Ayurvedic medicines and consumer goods.
By renaming Ruchi Soya Patanjali Foods Limited, the company is seeking to leverage the strength of the Patanjali brand in the edible oil market. Another reason behind the name change is to emphasize the company’s focus on the food business. Ruchi Soya is primarily known as an edible oil manufacturer, but the company is also involved in other food businesses such as soya food products and bakery fats.
The company wants to emphasize its concentration on the food business and establish itself as a major participant in the market by changing its name to Patanjali Foods Limited.
Impact of Ruchi Soya Name Change on the Company
The company’s future is likely to be significantly impacted by the name change. Ruchi Soya will probably gain from the Patanjali brand’s solid reputation and devoted following by joining forces with it.
The goods of Patanjali Ayurved are renowned for their high quality and reasonable prices, and the company has developed a strong brand in India. Ruchi Soya is likely to be able to increase its market share in the edible oil sector and other food businesses by taking advantage of the Patanjali brand’s strength.
rajkotupdates.news: Ruchi Soya To Be Renamed Patanjali Foods Company Board Approves Stock Surges. Because of this, the company’s stock price is probably to benefit from the name change as well. Ruchi Soya’s stock price has already increased as a result of the name change announcement because investors are upbeat about the company’s prospects under the Patanjali brand. As investors respond to the news, the stock price of the company is likely to increase further in the upcoming months.
Impact of Ruchi Soya Name Change on the Industry
The Indian edible oil business is expected to be impacted by the name change. One of the top players in the sector, Ruchi Soya’s new moniker is likely to increase awareness of the Patanjali name and the company’s offerings.
As other businesses look to rival Patanjali Foods Limited, this could result in more competition in the sector. The industry as a whole is probably going to benefit from the name change as well.
The company Patanjali Ayurved has a reputation for concentrating on Ayurvedic medications and consumer goods, and its foray into the edible oil sector may spark a rise in consumer interest in wholesome, organic meals.