The Securities and Exchange Board of India (SEBI) on March 28 provided an option to the investors in Ruchi Soya’s Rs 4,300 crore follow-on public offer (FPO) to withdraw their applications. The withdrawal window will remain open till March 30. The window for withdrawal shall be available on March 28, 29, and 30.
The regulatory body’s directive came amidst the “circulation of unsolicited SMSes advertising the issue”. The messages, that were allegedly sent to Patanjali Ayurved users, recommended them to invest in the offer.
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 because the company looked to become debt-free and also comply with Sebi’s requirement of increasing minimum public shareholding to 10%.
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 of the circulation of such unsolicited SMSes. This disclosure should clearly state the information pertaining to the window of withdrawal available to the investors in the ongoing FPO.
Sebi Statement
“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- Rs 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.
About IPO
The oil-and-food-products major launched its FPO on March 24 to garner Rs 4,300 crore. The company fixed a price band of Rs 615-650 for the public offer.
Meanwhile, shares of Ruchi Soya closed 5.96 per cent lower at Rs 815.05 on the BSE on Monday. The stock has lost 10.74 per cent in the last four sessions.
The dilution through the FPO would help Baba Ramdev-led Patanjali Ayurved to adhere to the minimum shareholding norms. In August 2021, the firm had received SEBI’s go-ahead to launch the FPO.
Post the FPO, Patanjali Group’s holding in Ruchi Soya will come down to about 81 per cent, and the public will hold about 19 per cent.
It had filed the draft red herring prospectus (DRHP) in June 2021. The company will utilize the entire issue proceeds for furthering the company’s business by repayment of certain outstanding loans, meeting its incremental working capital requirements, and other general corporate purposes.
