Profit Sheets

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

March 29, 2022 04:50 PM

Ruchi Soya FPO subscription falls as investors withdraw bids following SEBI's order
The subscription for Ruchi Soya Industries' Rs 4,300 crore follow-on public offer (FPO) is down to 2.58 times on March 29

Market regulator SEBI had directed Ruchi Soya Industries to give the investors who participated in its FPO the option to withdraw their bids due to “circulation of unsolicited SMSes advertising the issue”.

The subscription for Ruchi Soya Industries’ Rs 4,300 crore follow-on public offer (FPO) is down to 2.58 times on March 29 from 3.6 times yesterday, after the Securities and Exchange Board of India (SEBI) provided an option to investors to withdraw their applications

As many as 4.95 crore bids have been withdrawn so far. Patanjali Ayurved Group-controlled Ruchi Soya, backed by yoga guru Baba Ramdev, has priced its FPO at Rs 615-650 a share. It is the country’s largest edible oil-maker the first to be re-listed after the bankruptcy process.

Patanjali Ayurved Group-controlled Ruchi Soya’s, backed by yoga guru Baba Ramdev, has priced its FPO at Rs 615-650 a share. It is the country’s largest edible oil-maker the first to be re-listed after the bankruptcy process.

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

Market regulator SEBI had directed Ruchi Soya to give the investors who participated in its FPO the option to withdraw their bids due to “circulation of unsolicited SMSes advertising the issue”.

Ruchi Soya has lodged an FIR to take up the investigation against the circulation of unsolicited messages, regarding the FPO.

“There is an SMS/Message in circulation in social media, speculating about investment opportunity in our Company’s issue and about equity shares of our company being available at discount to the market price.

We wish to bring to the attention of the investors that this Message has not been issued by our company or any of our directors, promoters, promoter group, or group companies,” said Ruchi Soya in a letter to the stock exchanges today.

Industry experts said the diktat could delay the listing process and increase the risk of share sale getting unsubscribed if a large number of investors withdraw their bids.

This is not the first time the company has run into trouble with the regulator. In October 2021, the yoga guru and the company were warned by SEBI for making dubious investment promises. In a viral video, Baba Ramdev was seen asking his followers to buy shares of Ruchi Soya Industries if they wanted to become crorepatis.

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