Profit Sheets

Ruchi Soya board meeting to fix FPO issue price postponed to March 31

March 30, 2022 11:58 AM

Ruchi Soya board meeting to fix FPO issue price postponed to March 31
On March 28, capital markets regulator Securities and Exchange Board of India (SEBI) provided an option to the investors in Ruchi Soya's Rs 4,300 crore follow-on public offer (FPO) to withdraw their applications.

Ruchi Soya Industries have rescheduled its board meeting to March 31 to determine the FPO issue price. The board was initially scheduled to meet today – March 29.

On March 28, capital markets regulator Securities and Exchange Board of India (SEBI) provided an option to the investors in Ruchi Soya’s Rs 4,300 crore follow-on public offer (FPO) to withdraw their applications. The withdrawal window will remain open till March 30.

The regulatory body’s directive came amidst the “circulation of unsolicited SMSes advertising the issue”. The messages, that were allegedly sent to Patanjali Ayurved users, recommended them to invest in the offer.

The follow-on public offer of Ruchi Soya was subscribed 3.6 times as the FPO garnered bids for 17.60 crore equity shares against the size of 4.89 crore equity shares on the final day of bidding, March 28.

The retail quota, which is 35 percent of the issue, has seen a 90 percent subscription.

“In light of the SEBI letter directing to keep the window for withdrawal open till March 30, 2022, we will like to inform you that the board meeting proposed to be held on March 29, 2022 has been rescheduled, and now it will be held on March 31, 2022 for the purposes of determining the issue price and the anchor investor issue price,” Ruchi Soya said in a regulatory filing.

Also Read : Ruchi Soya FPO: Dates, Issue Price, GMP, Subscription, Share Analysis and Allotment

Shares of Ruchi Soya surged on Tuesday after the company, through newspaper advertisements, clarified that the SMSes pertaining to investments in its FPO have not been issued by the company or its promoters.

On Tuesday, the shares of the company settled 15.9 per cent higher at Rs 945.

On Monday, Ruchi Soya Industries Ltd informed the regulator and stock exchanges that it has come across some messages on social media “speculating” about investment opportunities in the FPO and the company shares being available at discount to the market price.

The company said this message has not been issued by it or any of its directors, promoters, promoter group or group companies.

It further said that an FIR has been lodged by the company in Haridwar to investigate these messages under the IT Act and Section 420 of the IPC.

“As directed by SEBI, we wish to bring to attention of the investors that all bidders (other than anchor investors) have an option to withdraw their bids from March 28, 2022, till March 30, 2022,” Ruchi Soya said.

“Investors should further note that bidding in the issue is closed on March 28, 2022, and accordingly no further bids will be accepted in the issue. Any bids, after the bid/issue closure will be rejected,” it added.

This regulatory filing followed a direction issued by SEBI after a meeting held earlier in the day with the bankers managing the FPO.

SEBI asked bankers to issue an advertisement in newspapers on Tuesday and Wednesday, cautioning investors about the circulation of SMS.

Besides, SEBI asked bankers to give an option to investors to withdraw their already placed bids till March 30.

The issue opened on March 24 and was subscribed 3.6 times till its scheduled closing on Monday.

The Ruchi Soya company has already raised Rs 1,290 crore from anchor investors.

The extension of FPO, only for withdrawal of bids briefly caused confusion among investors. “Since this was a sudden change of process and system had to consider these changes, for few updates in Cumulative Bids Details section only BSE Bids data was shown instead of Cumulative data of both the Exchanges”, the BSE statement said. The subscription numbers have now been ‘restored to previous day data, it added.

Also Read : Ruchi Soya FPO subscription falls as investors withdraw bids following SEBI’s order

The stock exchange displays cumulative bids of both exchanges every three minutes.

Shares of the Ruchi Soya on Tuesday jumped nearly 16 percent on the BSE to Rs 944.95.

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