Ruchi Soya stock jumps 16% despite FPO bid recall option - Times of India

Ruchi Soya stock jumps 16% despite FPO bid recall option – Times of India


MUMBAI: The controversy surrounding the Rs 4,300-crore follow-on public offer (FPO) by Ruchi Soya Industries notwithstanding, the stock price on Tuesday jumped 16% to Rs 945. The surge came even as the company filed an FIR in Haridwar to investigate who had circulated SMSs advising investors to participate in the offer.
On Monday, the day Ruchi Soya — a Patanjali Group company controlled by Baba Ramdev — closed its much-awaited FPO, markets regulator Sebi had asked it to allow investors till Thursday to withdraw their bids. The Sebi order came after it was found that some people had circulated SMSs telling investors that, at a 30% discount to the market price, the FPO was priced attractively.
Sebi decided that the circulation of SMSs was not proper and violated its rules, and hence it asked the company to give options to investors to withdraw their bids for two days after the close of the FPO. This was the first time that Sebi had acted against a company’s public offer after messages were spread soliciting investment in the offer.
On Monday, the bidding for the FPO had closed with a subscription of 3.6 times.
Following the Sebi directive, Ruchi Soya gave investors the option to withdraw their bids. The bid withdrawal window will close Wednesday evening. Although there were reports of some withdrawal of bids, BSE and NSE websites displayed bidding data only till March 28.
During the day, the company also said that it had filed an FIR in Haridwar for investigations under section 420 of IPC and section 67A of Information Technology Act against the circulation of the SMSs for which it was hauled up by the regulator. The company added that none from its management, board of directors or promoters was involved in circulating the SMSs.
The company further informed the exchanges that its board had deferred the meeting to decide on FPO price to March 31. Earlier, it was scheduled on March 29.
On Tuesday evening, the stock’s 16% rally to Rs 945 at close was accompanied by huge volumes. The BSE then asked the company to explain the spurt in volumes. The company was yet to reply to the bourse’s query till the time of going to the press.
Ruchi Soya is one of the rare companies that went in for a debt restructuring under the IBC and remained listed. In most cases, after the debt resolution process, the new owners prefer to delist the company and take the restructured entity private.
Since the company was restructured about two and half years ago, the stock price has jumped more than 250 times — from less than Rs 4 in late October 2019 to the current price of Rs 945. In between it had touched a life-high level at near Rs 1,300 on BSE.


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