Foreign investors have withdrawn most of their bids, while high net-worth and retail investors saw only a minor pullback in Ruchi Soya Industries Ltd follow-on public offer, according to data from the BSE.
Some 14,583 applications, amounting to 9.74 million shares, were withdrawn as of March 30, the data showed. Qualified institutional bidders withdrew 7.86 million bids, while high net-worth investors recalled 1.31 millions. Retail investors withdraw 5.70 lakh shares.
With this withdrawal, the overall subscription fell to 3.39 times compared to 3.6 times on March 28.
The issue was in trouble on the last day after the Securities and Exchange Board of India (Sebi) ordered the firm to allow investors to withdraw their applications to the company’s follow-on offer after reports of unsolicited marketing messages surrounding the issue surfaced.
On March 29, Ruchi Soya issued a public notice saying they have lodged a first information report to find out the origin and the culprits of unsolicited SMSes after the market regulator ordered the firm to provide options to the investors to withdraw their applications.
This is not the first time Ruchi Soya is in trouble. Earlier in October 2021, a clip of Ramdev urging viewers to invest in the Ruchi Soya stock during a yoga session on Aastha TV channel went viral. After this video, Sebi sent out a letter warning Baba Ramdev for making dubious claims ahead of the Ruchi Soya FPO.
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