NEW DELHI: The Securities and Exchange Board of India (Sebi) on Monday provided a 3-day window to investors in Ruchi Soya’s follow-on public offer (FPO) to withdraw their bids.
The option is available to all investors or bidders, except for anchor book participants.
Sebi’s order comes following the circulation of unsolicited SMS advertising the company’s FPO.
The capital markets regulator termed content of the advertisements to be “misleading/fraudulent and not in consonance with Sebi (ICDR) Regulations, 2018”.
In its official circular, Sebi directed Patanjali Group company Ruchi Soya to issue an advertisement to the investors cautioning them about the circulation of such messages.
The advertisement will be issued in newspapers on March 29 and 30.
Besides, the order said that the 3-day window for withdrawal of bids shall be available from March 28-30 and the procedure for the same will be informed to investors as part of the advertisement.
Baba Ramdev-led Patanjali Ayurved-owned Ruchi Soya hit the capital market on March 24 to raise Rs 4,300 crore through its FPO, aiming to become a debt-free company.
The company had been acquired by Patanjali Group in 2019 for Rs 4,350 crore through an insolvency process.
The FPO was subscribed 3.6 times as bids were received for 17.6 crore equity shares, compared to its size of 4.89 crore. Today was the final day of the bidding process.
The retail portion of the FPO was subscribed 90 per cent, whereas the qualified institutional buyer (QIB) portion was subscribed 2.2 times.
Ruchi Soya Industries’ stock closed nearly 6 per cent lower at Rs 815.05 on the BSE, while it finished 6.06 per cent down at Rs 815.05 on the NSE.