About 97 lakh bids have been withdrawn from the Rs 4,300 crore FPO of Ruchi Soya Industries after SEBI gave investors the option to withdraw their bids.
Ruchi Soya FPO: About 97 lakh investors withdrew their bids from Ruchi Soya Industries’ follow-on offer (FPO) after market regulator SEBI gave investors the option to withdraw. However, the company’s follow-on offer (FPO) has been completed.
Ruchi launched a follow-on offer (FPO) worth Rs 4,300 crore on March 24 to become a debt-free company and meet SEBI’s shareholding rules. Ruchi Soya has fixed the final issue price of its FPO at Rs 650, which was the high price band of the issue.
The company has already raised Rs 1,290 crore from anchor investors by issuing 1.98 crore shares in the high priced band of Rs 650 crore. Meanwhile, Ruchi Soar shares fell 2.23 per cent to close at Rs 955.60 on the BSE on Thursday.
Why did SEBI give investors the opportunity to withdraw their bids?
SEBI on Monday warned Ruchi Soar bankers about the circulation of some unsolicited SMSes regarding the sale of shares during FPOs and asked investors to give them the option to withdraw their bids.
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According to a report by news agency PTI, FPO subscriptions dropped 3.6 times to 3.39 times on March 30 from the March 28 offer closing level. It shows that about 97 lakh bids were withdrawn. He said mainly foreign investors have withdrawn their bids.
Earlier, the company had told SEBI and the stock exchange that it had received some messages on social media about the possibility of investing in an FPO. It mentions getting the company’s shares at a lower price than the market price.
The company claims that the SMS was not issued by it or its directors, promoters or group companies. In this regard, the agency has filed an FIR in Haridwar seeking an inquiry.
