Yoga guru Baba Ramdev’s Ruchi Soya Industries Ltd has found itself at loggerheads with the capital markets regulator again.
In a first, the Securities and Exchange Board of India has allowed investors to withdraw their applications to the company’s follow-on public offer after reports of unsolicited messages advertising the FPO surfaced.
The FPO closed for subscription on March 28. The total issue subscribed 3.6 times. QIB and non institutional investors subscribed 2.2 times and 11.75 times respectively. Retail investors subscribed 0.9 times.
Analysts believe that SEBI’s step is needed to hinder such unsolicited advertising and marketing ahead of a fundraising.