Patanjali Secures Rs 3,200 Crore Loan From Banks To Buy Ruchi Soya
Patanjali has secured the loan from a consortium of lenders, led by State Bank of India.
Baba Ramdev-led Patanjali Ayurved Ltd. on Friday said it has already tied up Rs 3,200 crore loan from a consortium of lenders, led by State Bank of India, to fund acquisition of Ruchi Soya Industries Ltd. through insolvency process.
In September, the National Company Law Tribunal approved Patanjali’s resolution plan for debt-laden Ruchi Soya.
"The company has already secured required total debt from a consortium of banks led by State Bank of India," Patanjali Ayurved Managing Director Acharya Balkrishna said in a statement.
This includes Rs 1,200 crore from SBI, Rs 700 crore from Punjab National Bank, Rs 600 crore from Union Bank of India, Rs 400 crore from Syndicate Bank and Rs 300 crore from Allahabad Bank.
Ruchi Soya went into the insolvency in December 2017. Shailendra Ajmera of EY was appointed as resolution professional to manage the company's affairs and conduct insolvency proceedings.
NCLT had admitted Ruchi Soya’s insolvency case filed by two lead financial creditors Standard Chartered Bank and DBS Bank. Later, Singapore-based DBS Bank turned a dissenting creditor and approached the National Company Law Appellate Tribunal, challenging the distribution of proceeds from the bid submitted by Patanjali.
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Ruchi Soya told the NCLT that Patanjali will infuse Rs 204.75 crore as equity and Rs 3,233.36 crore as debt. The amounts will be infused into a special purpose vehicle, Patanjali Consortium Adhigrahan Pvt Ltd, which will be later amalgamated with Ruchi Soya.
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Another Rs 900 crore will be infused by the Patanjali Group through subscription of non-convertible debentures and preference shares in the special purpose vehicle. It will also provide a credit guarantee of nearly Rs 12 crore.
On April 30 this year, a committee of creditors approved Patanjali's Rs 4,350 crore resolution plan to take over Ruchi Soya. Lenders are taking a haircut of about 60 percent.