The BSE on March 29 issued a clarification on the FPO subscription numbers of Ruchi Soya Industries.
Investors in Ruchi Soya's follow-on public offer (FPO) have now been allowed to withdraw their bids, all because of an advertisement that was termed as misleading by the market regulator SEBI. Investors other than anchor buyers have an option to withdraw the bid till March 30, in an unprecedented action.
The extension of FPO, only for withdrawal of bids briefly caused confusion among investors. "Since this was a sudden change of process and system had to consider these changes, for few updates in Cumulative Bids Details section only BSE Bids data was shown instead of Cumulative data of both the Exchanges", the BSE statement said. The subscription numbers have now been 'restored to previous day data, it added. The stock exchange displays cumulative bids of both exchanges every three minutes.
SEBI, citing the circulation of the above message, had also asked Ruchi Soya to issue an advertisement in newspapers, cautioning the investors about the circulation of such unsolicited SMS. The advertisement is to be issued on "March 29 and 30", the market regulator had said in its order.
Ruchi Soya has also lodged an FIR to take up the investigation against the circulation of unsolicited messages, regarding the FPO.
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 against 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.
The follow-on public offer of Ruchi Soya was subscribed 3.6 times as the FPO garnered bids for 17.60 crore equity shares against the size of 4.89 crore equity shares on the final day of bidding - March 28.
The retail quota, which is 35 percent of the issue, has seen a 90 percent subscription.
The company has reserved half of the offer for qualified institutional buyers and 15 percent for non-institutional investors. Their portions were subscribed 2.2 times and 11.75 times, respectively. The firm had already mopped up Rs 1,290 crore through the anchor book, out of the total fundraising aim of Rs 4,300 crore.