Indian edible oils firm Ruchi Soya Industries has signed a deal to sell a majority share of its business, along with its branded edible oils operations, to Devonshire Capital.

Devonshire was set to acquire a 51% share in Ruchi, while also buying a 100% share of Ruchi’s packaged oils business for Rs4,000 crore (US$615.5M), The New Indian Express wrote on 3 November.

“This strategic investment by Devonshire will enhance the value of our business and provide an effective solution to resolve our outstanding issues with the banks, financial institutions and operational creditors,” said Ruchi CEO and managing director Dinesh Shahra.

“We are optimistic of an early completion of this restructuring exercise after all necessary approvals from the lenders and legal formalities,” he continued.

Rushi Soya’s enterprise value stood at approximately Rs6,700 crore (US$1bn) with its debt at Rs5,923 crore (US$911M) at the end of September, according to Bloomberg.

Two international lenders – DBS Bank India and Standard Chartered Bank – filed independent insolvency cases against Ruchi Soya in September at the Mumbai bench of India’s National Company Law Tribunal.

Ruchi was also one of the 28 companies on the Reserve Bank of India’s second defaulter list for bankruptcy proceedings under the country’s Insolvency and Bankruptcy Code, according to Bloomberg.