Sebi Orders Ruchi Soya To Allow Retail Investors To Withdraw Bids From FPO

The market regulator in a letter on Monday said prima-facie the contents appear to be 'misleading/fraudulent'. The window for withdrawal shall be available on March 28, March 29, and March 30

New Delhi: The Securities and Exchnage Board of India (Sebi) on Monday directed Ruchi Soya to provide the option to the FPO investors, barring the anchor investors, to withdraw their bids due to “circulation of unsolicited SMSs advertising the issue”.

The market regulator in a letter on Monday said prima-facie the contents appear to be 'misleading/fraudulent'. The window for withdrawal shall be available on March 28, March 29, and March 30, 2022.

An SMS is to be sent to all the applicants of the received bids, informing them of the additional window of withdrawal. A notice to investors shall be issued in the form of an advertisement in the newspapers, which will be issued on March 29 and March 30, 2022.

Ramdev-led Patanjali Ayurved-owned Ruchi Soya’s follow-on public offer (FPO) was overall subscribed 3.8 times on the final day of bidding on Monday. This includes 0.9 times of the retail portion getting subcribed.

According to a news report, some bankers have said that the Sebi's new guideline could delay the listing process and also increase the risk of IPO getting unsubscribed if large number of investors withdraw their bids.

Ruchi Soya had last week hit the capital market to raise Rs 4,300 crore through its follow-on public offer (FPO) as it aims to become a debt-free company. The issue closed on March 28. The price band has been fixed at Rs 615 to Rs 650 per share. The company had raised Rs 1,290 crore from anchor investors ahead of its FPO.

In August last year, the company had received approval from the mrket regulator Sebi to launch the FPO. The company had filed the draft red herring prospectus (DRHP) in June 2021.

According to the DRHP, Ruchi Soya would utilise the entire issue proceeds for furthering its business by repayment of certain loans, meeting its incremental working capital requirements, and other general corporate purposes.

Ruchi Soya primarily operates in the business of processing oilseeds, refining crude edible oil for use as cooking oil, manufacturing soya products, and value-added products.