Ruchi Soya, can someone explain

[ShruteSastry]

https://www.google.com/search?q=ruchi+soya+stock&rlz=1C1GCEB_enUS851US851&oq=ruchi+soya+stock&aqs=chrome..69i57j0l7.3504j1j7&sourceid=chrome&ie=UTF-8

[Spartan]

Oil brand kada...cooking oil is famous

also Patanajali investment to stock surged

[ShruteSastry]

from Rs.17 to Rs.1,520 , that's a 8000% surge.

Market cap is : 450 B damn!!!

[dasara_bullodu1]

why is the curve so fcking flat

[Pitta]

[Hydrockers]

Shares dilution chesaru ga 

Means before takeover 1000 shares unte ippudu 10 shares ee vastai ani ekkado chadiva  

 

[Hydrockers]

Insolvency and Bankruptcy rules, there is no provision for the existing Shareholders of the company. Decisions regarding existing shareholders solely depend on the buyer of the insolvent company, bought through the NCLT route! The buyer or new owner of the company can offer anything to the existing shareholders. In the Ruchi Soya Industries Ltd (NS: RCSY ) case, existing shareholders have got something around 5–6 percent value of their investment. Before pause on trading, Ruchi soya stock was trading around Rs 3.50. And when trading resumed in stock with the new share capital structure and promoter, closing of stock that day was around Rs 17. This means the value of share price has seen a rise of 500–600% rise. So, existing shareholders must have earned a 500–600% return!

But Patanjali Group had already notified to BSE and NSE in December 2019 that it has reduced the Equity share capital of the existing shareholders by 99 percent. It means those who were holding 100 shares of the company now have 1 share. So, the final value existing shareholders have got shall lie between 5–6 percent, as per my rough calculations.

Recently on Twitter, Facebook (NASDAQ: FB ) and some financial websites, I saw some retail investors planning to file a case against Ruchi Soya in Court! I think the reduction of share capital is their main reason for such planning. By the way, I do not remember any such case in which the share price had not been adjusted against such share capital reduction. So, it is very difficult to comment on this thing. Even in Insolvency and Bankruptcy Rules, there is not much information about the shareholder's provisions.

But generally what is followed when the company is not a listed entity, is that Secured Creditors are paid first, then unsecured creditors are paid and then remaining stakeholders are paid. Shareholders come at last. So, if secured and unsecured lenders have taken a haircut on their loans, any shareholder can't take any action against what he gets after the successful restructuring of the company. Means, whatever Ruchi Soya existing shareholders have got after the final restructuring process, they don't have the power to take action against this. It solely depends on the new owner of the company what he decided and pays to shareholders.

[Hydrockers]

98.87% of the stock is owned by Baba Ramdev’s companies and trusts.