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Ruchi Soya, which is acquired by Baba Ramdev-promoted Patanjali Group, is set to launch its Follow-On Public Offer (FPO) on March 24. The issue will close on March 28.

The edible oil company is eyeing to raise Rs 4,300 crore through this FPO.

“The FPO comprises equity shares of face value of Rs 2 each aggregating to Rs 4,300 crore. The issue also includes a reservation of up to 10,000 equity shares for subscription by eligible employees. If such placement is completed, the follow-on size will be reduced,” it said in a statement.

The forthcoming FPO is intended to help the company meet SEBI’s minimum public shareholding of 25 percent in a listed organisation. The company expects it will take three years to reduce advertiser’s stake to 75 percent.

Patanjali Group, which acquired Ruchi Soya for Rs 4,350 crore through an insolvency process, currently owns 98.9 percent of the edible oil organisation, with the rest held by public shareholders while public shareholders the remaining 1.1 percent.

Post the FPO, Patanjali’s holding in Ruchi Soya is likely to come down to around 81 percent, and the rest will be owned by public investors.

The company is expected to use the proceeds from the issue for, among other things, reimbursement of due loans, meeting its incremental working capital needs other than general corporate purposes.

Ruchi Soya had filed its draft red herring prospectus (DRHP) in June 2021, and received SEBI’s approval to launch the FPO in August.