This Article is From Mar 28, 2022

Give Investors' Option To Withdraw FPO Bids: SEBI To Patanjali's Ruchi Soya Bankers

Ruchi Soya: Sebi asked bankers to issue an advertisement in newspapers on Tuesday and Wednesday cautioning investors about the circulation of SMSes

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India News

SEBI told bankers of Ruchi Soya to give an option to investors to withdraw their bids

New Delhi:

Capital markets regulator SEBI on Monday asked bankers of Baba Ramdev-led Patanjali group's Ruchi Soya to give an option to investors in its ongoing follow-on public offer of shares to withdraw their bids while also cautioning them about "circulation of unsolicited SMS" about the share sale.

The development assumes significance as the share sale was already oversubscribed 3.6 times and withdrawal of bids can have a bearing on the final numbers.

According to a regulatory filing, Ruchi Soya Industries Ltd informed the regulator and stock exchanges that it has come across some messages on social media "speculating" about investment opportunities in the FPO and the company shares being available at discount to the market price.

The company claimed this message has not been issued by it or any of its directors, promoters, promoter group or group companies.

It further said that an FIR has been lodged by the company in Haridwar to investigate these messages under the IT Act and Section 420 of the IPC.

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"As directed by SEBI, we wish to bring to attention of the investors that all Bidders (other than Anchor Investors), have an option to withdraw their Bids from March 28, 2022, till March 30, 2022," Ruchi Soya said.

"Investors should further note that bidding in the Issue is closed i.e. March 28, 2022, and accordingly no further Bids will be accepted in the Issue. Any Bids, after the Bid/Issue closure will be rejected," it added.

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This regulatory filing followed a direction issued by Sebi after a meeting held earlier in the day with the bankers managing the Rs 4,300 crore FPO.

Sebi asked bankers to issue an advertisement in newspapers on Tuesday and Wednesday cautioning investors about the circulation of SMSs.

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Besides, Sebi asked bankers to give an option to investors to withdraw their already placed bids till March 30th.

The issue opened on March 24 and the subscription level was 3.6 times at the close of the scheduled closing this evening.

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The company has already raised Rs 1,290 crore from anchor investors.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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