Sebi asks Ruchi Soya to allow FPO investors to withdraw bids

29 Mar 2022 , 12:06 PM

The Securities and Exchange Board of India (SEBI) directed Ruchi Soya Industries to give investors who subscribed to the firm’s follow-on public offer (FPO), a window until Wednesday to withdraw bids, citing the circulation of “unsolicited SMSes”.

The FPO issue had closed on Monday.

This is to bring to public notice that “There is an SMS/Message in circulation in social media, speculating about investment opportunity in our Company’s Issue and about equity shares of our Company being available at discount to the market price (“Message”). We wish to bring to the attention of the investors that this Message has not been issued by our Company or any of our Directors, Promoters, Promoter Group, or Group Companies,” Ruchi Soya said.

A first information report (FIR) bearing No. 0188 dated March 27, 2022 (“FIR”) has been lodged by Ruchi Soya Pvt Ltd with a police station at Haridwar to take up an investigation with respect to the circulation of the Message, under Section 67A of the Information Technology Act, 2000 and section 420 of the Indian Penal Code, 1860, the company said.

The capital markets regulator said prima facie, the contents of the text messages appeared to be “misleading/fraudulent” and don’t comply with regulations. This followed a meeting with bankers to the issue on Monday. “

The follow-on public offering of Ruchi Soya Industries Ltd, a diversified FMCG and FMHG focused company, with strategically located manufacturing facilities and well-recognised brands having pan India presence, received bids of 17,60,68,935 shares against the offered 4,89,46,260 equity shares, as per the 5:00 pm data available on the BSE website.

Overall the issue was subscribed 3.60% on the final day of bidding.

The portion reserved for retail investors was subscribed 0.90 times. While the Qualified Institutional Buyer category was subscribed 2.20 times, the Non-Institutional Investor category was subscribed 11.75 times and the Employee Reserved category was subscribed 7.76 times.