Patanjali secures Rs 3,200 crore loan for Ruchi Soya acquisition
today Dec 2, 2019
Ayurvedic fast moving consumer goods business Patanjali has secured a Rs 3,200 crore ($481 million) bank loan from a group of lenders led by the State Bank of India to aid its acquisition of oil manufacturer Ruchi Soya.
Patanjali announced on Friday that it has secured the necessary loan to fund its planned Ruchi Soya acquisition through insolvency process, the Press Trust of India reported. "The company has already secured required total debt from a consortium of banks led by State Bank of India," said Patanjali Ayurved’s managing director Acharya Balkrishna said in a statement.
Patanjali’s full resolution plan totals Rs 4,350 crore. The business has secured loans totalling Rs 1,200 crore from the State Bank of India, Rs 700 crore from the Punjab National Bank, Rs 600 crore from the Union Bank of India, Rs 400 crore from Syndicate Bank, and Rs 300 crore from Allahabad Bank.
The National Company Law Appellate Tribunal recently extended Patanjali’s deadline for submitting its resolution plan for Ruchi Soya from November 21 to December 16. Ruchi Soya began insolvency proceedings in December 2017 and the National Company Law Tribunal approved Patanjali’s resolution plan for the business in September 2019. The acquisition is intended to greatly increase Patanjali’s manufacturing capabilities in India.
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