The Securities and Exchange Board of India (SEBI) on March 28 provided an option to the investors in Ruchi Soya's Rs 4,300 crore follow-on public offer (FPO) to withdraw their applications. The withdrawal window will remain open till March 30.
The regulatory body's directive came amidst the “circulation of unsolicited SMSes advertising the issue”. The messages, that were allegedly sent to Patanjali Ayurved users, recommended them to invest in the offer.
“Great news for all beloved members of Patanjali parivar. A good investment opportunity in Patanjali Group. Patanjali Group company- Ruchi Soya Industries Ltd has opened the Follow-On Public offer (FPO) for retail investors. The issue closes on 28 March 2022. This is available in the price band- Rs 615-650 rupees per share , i.e discount of about 30% to market price. You can apply for shares through your bank/ broker/ ASBA/UPI in your Demat account", the unsolicited message read.
SEBI, citing the circulation of the above message, has 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 said in its order.
The window for withdrawal of bids will be available on "March 28, 29 and 30", the regulator said, adding that the procedure for withdrawal shall be informed to the investors via an advertisement.
The follow-on public offer of Ruchi Soya has been 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.
Employees have put in bids for 77,616 equity shares against the 10,000 shares reserved for them.
The Patanjali-backed company had already mopped up Rs 1,290 crore through the anchor book, out of the total fundraising aim of Rs 4,300 crore.
The price band for the offer, which opened on March 24, has been fixed at Rs 615-650 per share.
Ruchi Soya is, notably, a diversified FMCG and FMHG (fast moving consumer and health goods) company, with facilities and brands having a pan-India presence. It is counted amongst the largest FMCG companies in the Indian edible oil sector and one of the largest fully integrated edible oil refining firms in the country.
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