Yoga guru Ramdev-led edible oil firm Ruchi Soya will raise up to Rs 4,300 crore through a follow-on public offer (FPO) to be launched on March 24.

In an exchange filing late Friday, the Patanjali Ayurveda-owned firm informed that a committee of the company’s board has approved the red herring prospectus (RHP).

The panel also approved the issue opening date of March 24 and closing date of March 28, 2022.

In August 2021, Ruchi Soya had received capital market regulator Sebi’s go-ahead for the FPO. The company had filed the draft red herring prospectus in June 2021.

The FPO is aimed at meeting the Sebi norm of minimum public shareholding of 25 per cent in a listed entity.

As per the draft prospectus, it will utilise the entire issue proceeds for furthering the company’s business by repayment of certain outstanding loans, meeting its incremental working capital requirements and other general corporate purposes.

In 2019, Patanjali Ayurveda had acquired Ruchi Soya, which is listed on the stock exchanges, through an insolvency process for Rs 4,350 crore.

The promoters currently have nearly 99 per cent stake. The company needs to dilute a minimum 9 per cent stake in this round of the FPO.

As per Sebi rules, the company needs to bring down promoters’ stake to achieve the minimum public shareholding of 25 per cent. It has around 3 years to pare promoters’ stake to 75 per cent.

Ruchi Soya primarily operates in the business of processing oilseeds, refining crude edible oil for use as cooking oil, manufacturing soya products, and value-added products.

The company has an integrated value chain in palm and soya segments having a farm to fork business model. It has brands such as Mahakosh, Sunrich, Ruchi Gold and Nutrela.