The Securities and Exchange Board of India (Sebi) has directed Ruchi Soya Industries to give the option to investors, who participated in their Rs 4,300-crore follow-on public offering (FPO), to withdraw their bids from 28-30 March.
This is after Sebi noticed some unsolicited messages going out to Patanjali Ayurved Ltd’s users to invest in the said offer.
The SMS contained forward-looking statements with regard to Ruchi Soya’s share price performance to attract investors to the issue.
“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 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, according to Mint.
Ruchi Soya’s FPO, which closed today, has garnered 3.6 times subscription.
Sebi has directed the lead banking managers to issue a notice to all the investors cautioning them of such circulation of unsolicited SMSes.
“All investors/bidders (except anchor book participants) shall be given an option to withdraw their bids. The window for withdrawal shall be available on March 28, March 29 and March 30, 2022. The procedure for withdrawal shall be informed to investors and shall form part of the advertisement being issued,” Sebi directed.
Last week, Ruchi Soya hit the capital markets to raise nearly Rs 4,300 crore through its follow-on public offer, in an attempt to make the company debt free.
Additionally, Sebi has asked the bankers to immediately notify the stock exchanges on circulation of such unsolicited SMS.
This disclosure should clearly state the information pertaining to the window of the withdrawal available to the investors in the ongoing Follow-on public offer.
A SMS has to be sent to all the applicants of the received bids, informing them about the additional window for withdrawal of these bids, the regulator directed.
Shares of Ruchi Soya dropped 6 per cent on Monday to close at Rs 815. The company has priced its FPO in the range between Rs 615-Rs 650 per share – 20 per cent-25 per cent lower than the last close.
Patanjali Ayurved owns 98.9 per cent stake in Ruchi Soya, while only 1.1 per cent is with the public.
Following the FPO, Patanjali’s shareholding is expected to reduce to 81 per cent, while public shareholding will rise to 19 per cent.