Ruchi Soya FPO: Sebi requests that individual investors be allowed to withdraw bids

Market regulator Sebi directed Ruchi Soya to give the option to FPO investors (aside from the main investors) to withdraw their bids due to “spamming advertising of the issue”. At first glance, the regulator said the contents appeared to be “misleading/fraudulent”.

The withdrawal window will be available on March 28, March 29 and March 30, 2022.

An SMS will be sent to all bidders received, informing them of the additional window for withdrawal. A notice to investors will be issued in the form of a newspaper announcement to be issued on March 29 and March 30, 2022.

Ruchi Soya’s follow-up public offering (FPO), which closed on Monday, has received 3.6 times the subscription, including 0.9 times the retail portion that was subscribed. Bankers said SEBI’s dictates could delay the listing process and also raise the risk of IPO cancellations if a large number of investors withdraw their bids.

Ruchi Soya, owned by Baba Ramdev, led by Patanjali Ayurved, hit the capital market last week to raise Rs 4,300 crore through a follow-up public offering (FPO) as it aims to become a debt-free company.

The release closed on March 28. The price range has been set at Rs 615 to Rs 650 per share.

Ruchi Soya Industries raised Rs 1,290 crore from core investors prior to FPO.

Foreign investors, who have received provisions under the principal investor portion of the FPO, include Societe Generale, BNP Paribas, Oman, Ministry of Defense Pension Fund, Yas Takaful PJSC (an Abu Dhabi-based insurance company), MK Cohesion, UPS Group and Chemistry.

After the FPO announcement, the Patanjali Group’s stake in Ruchi Soya will drop to about 81 percent, and the public will own about 19 percent.

In 2019, Patanjali acquired Ruchi Soya, which is listed on the stock exchanges, through a bankruptcy process of Rs 4,350 crore.

Ruchi Soya is primarily engaged in oilseed processing, refining of crude edible oil for use as cooking oil, and manufacturing of soy products and value-added products. The company has an integrated value chain in the palm and soybean sectors, and has a farm-to-fork business model.

It has brands such as Mahakosh, Sunrich, Ruchi Gold and Nutrela.

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