Active Stocks
Mon Apr 15 2024 15:59:36
  1. Tata Steel share price
  2. 160.90 -1.59%
  1. ITC share price
  2. 425.90 -0.98%
  1. State Bank Of India share price
  2. 757.75 -1.17%
  1. ICICI Bank share price
  2. 1,078.80 -2.30%
  1. NTPC share price
  2. 361.35 -0.08%
Business News/ Markets / Ipo/  Retail investors can scrap Ruchi FPO bid
BackBack

Retail investors can scrap Ruchi FPO bid

The Ruchi Soya follow-on offer opened on 24 March and closed on Monday, as the company looked to become debt-free and also comply with Sebi’s requirement of increasing minimum public shareholding to 10%

Sebi move followed instances of unsolicited messages being sent to Patanjali Ayurved users to invest in the said offer (Photo: Mint)Premium
Sebi move followed instances of unsolicited messages being sent to Patanjali Ayurved users to invest in the said offer (Photo: Mint)

MUMBAI : Retail investors who have submitted bids for Ruchi Soya Industries Ltd’s 4,300 crore follow-on public offering can choose to withdraw their applications during 28-30 March, in a rare such step by the Securities and Exchange Board of India (Sebi).

The market regulator’s move followed instances of unsolicited messages being sent to Patanjali Ayurved Ltd’s users to invest in the said 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— 615-650 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," according to the unsolicited message, a copy of which was seen by Mint.

Sebi directed the lead banking managers to the FPO to issue a notice to all investors in the form of newspaper advertisements, cautioning them about the circulation of such unsolicited SMSes, on Tuesday and Wednesday.

The follow-on offer opened on 24 March and closed on Monday, as the company looked to become debt-free and also comply with Sebi’s requirement of increasing minimum public shareholding to 10%.

Public shareholding in Ruchi Soya stood at 1.10% in the quarter ended 31 December.

Sebi said the procedure for withdrawal of applications by investors should be disclosed as part of the advertisements.

Additionally, the market regulator has asked the bankers to immediately notify the stock exchanges on circulation of such unsolicited SMSes. This disclosure should clearly state the information pertaining to the window of the withdrawal available to the investors in the ongoing FPO.

An SMS has to be sent to all the applicants whose bids have been received, informing them about the additional window provided to withdraw their bids, the regulator directed.

“As per the regulatory norms, an offer cannot be made without referring to an offer document which the unsolicited SMS did. The company also cannot proactively specify about the discount offered, since that is not precise in reality. In addition, the company as per the message cannot claim that the offer is a “good investment" unless verified by an independent source. More importantly, the company also has to adhere to Sebi’s publicity guidelines while circulating such messages on the offer," said a person with direct knowledge of the matter.

The FPO of Baba Ramdev-led Ruchi Soya was subscribed 3.8 times on the final day of bidding. Shares of Ruchi Soya closed 5.96% lower at 815.05 on Monday on the BSE, widely underperforming a 0.4% rise in the benchmark index.

Swaraj Singh Dhanjal contributed to the story

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 28 Mar 2022, 07:59 PM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started
Switch to the Mint app for fast and personalized news - Get App