Patanjali Ayurveda has knocked at the doors of PSU banks to raise funds for its Rs 4,350-crore buyout of Ruchi Soya Industries.
Out to become a key producer of soyabean oils and other products, the homegrown consumer goods firm Patanjali had bid for the riddled Ruchi Soya. It has to raise over Rs 3,700 crore after generating Rs 600 crore through internal accruals.
It is said to have approached state-run banks to raise debt with a maturity of five years and above from State Bank of India, Punjab National Bank, Bank of Baroda, Union Bank and Jammu & Kashmir Bank.
The funding is in the final stages of negotiation, according to reports. The move to approach PSU banks came after several non-banking firms the company approached sought high-level of disclosures.
Patanjali was the lone bidder for Ruchi Soya in an insolvency auction held by lenders seeking to recover more than Rs 9,300 crore. SBI leads among the creditors of Ruchi with a maximum exposure of Rs 1,800 crore, followed by Central Bank of India (Rs 816 crore) and PNB (Rs 743 crore).
Adani Wilmar exited from the bid in August last year leaving Patanjali to be the lone bidder. In April, it increased its bid value by around Rs 200 crore to Rs 4,350 crore. This excluded Rs 1,700 crore as capital infusion.
It was on May 10 that the National Company Law Tribunal reserved its order on the Patanjali offer and for the second time sought clarity on Rs 600 crore of part-funding from internal accruals for the acquisition and asked it make a written submission in this regard.