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Bankrupt Ruchi Soya was bought by Patanjali in Dec 2019. Share price then was Rs 3 rupees and market capitalizations was Rs ~3500 Cr.

Today share price surged above Rs 1300 and Mcap is Rs 38000 Crs within 6 months.

Everything fits well under the bankruptcy act but....
They reduced the Equity share capital of the existing shareholders by 99 percent and kept only 2% floating shares while the rest 98% owned by promoters. This 2% of floating shares have done this magic and this was not unintentional.

in.investing.com/analysis/does-…
The bankrupt company was having 9345 Crs loan default to financial creditors led by SBI, which has an exposure of Rs 1,800 crore, Central Bank at Rs 816 crore, Punjab National Bank at Rs 743 crore. Thus the resolution cames at over Rs 60 percent haircut to the lenders.
Even more surprising, for this acquisition, Patanjali took a loan of Rs 3200 Cr was itself is given by SBI (1200 cr) PNB (700 cr), Union Bank (600 cr), Syndicate Bank (400 cr) & Allahabad Bank (300 cr). Patanjali's own contribution was only 600 Cr.
economictimes.indiatimes.com/industry/servi…
Everyone knows how nationalized banks work. Clearly, Banks helped to change just promoters, with 5000 Crs loss to themselves and loss to millions of retail shareholders. Babaji got a company with a huge discount under the law passed by parliament. This is how capitalism works!
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