Margins

• The target firm was bankrupted for Rs12,146 crores.
• The profit margin for Edible oils was 15%.

Annual profit margins of 37 CARE rated edible oil companies

Market

Both companies operate in the Indian FMCG market.

Finances

• Target company was Bankrupt by 12,490 Crores.

Deal Structure

• Rs 4,235 crore of the debt would be repaid by Patanjali from a fresh loan from some of the same banks that had taken over a 50% haircut on their Ruchi Soya loans.

• Stock market speculation opportunity via a reverse merger with Patanjali.
• This can make Ruchi Soya look attractive to traders.
• Inflated valuation and increased demand for the 1% publicly owned shares.

Opportunities