Ruchi Soya says the SMS related to the FPO was not issued by the company

Ruchi Soya Industries said the SMS related to investments in the follow-up public offering (FPO) were not issued by the company or its promoters. The company has submitted its first media report to investigate the origin of messages making the rounds on social media.

“We understand that there is a text message/message circulating in social media, speculating about investment opportunities in our company’s cause and about the availability of shares in our company at a discount from the market price. We would like to draw the attention of investors that this message was not issued by our company or any of our directors or Our promoters or group of promoters or group companies.The first media report bearing the number 0188 dated 27 March 2022 has been registered by our company with a Haridwar Police Station to pursue investigation in relation to the letter, under Section 67A of the Information Technology Act 2000 and Section 420 of the Indian Act, Ruchi said. Soya in a newspaper advertisement “The Penal Code of 1860”.

The Securities and Exchange Board of India (SEBI) has directed Ruchi Soya Industries to give investors who took part in the follow-up public offer (FPO) of Rs 4,300 crore an option to withdraw their bids due to “trading of spam SMS advertising trouble”.

In the announcement, Ruchi Soya stated that the last day to withdraw bids will be Wednesday. The company has also released an indicative timeline for listing new shares being issued in the FPO. On schedule, the new post will be listed “on or around” April 8.

SEBI dictates to the company after a message circulated on social media that said the FPO was a “good investment opportunity” and that the shares were available at a 30 percent discount.

“Great news to all our beloved Patanjali parivar members. Good investment opportunity in Patanjali Group. Patanjali Group Corporation – Ruchi Soya Industries has opened its Public Follow Up (FPO) to retail investors. The issue closes on March 28, 2022. This is available in the price range – Rs 615-650 per share, i.e. a discount of about 30 per cent to the market price. You can apply for the shares through the bank/broker/ASBA/UPI in your Demat account,” read the letter.

In a letter to the three investment bankers dealing with the sale of Ruchi Soya’s shares, Sebi said at first glance that the contents of the SMS appeared to be “misleading/fraudulent” and did not comply with ICDR (Capital Requirements Release and Disclosure) regulations.

Ruchi Soya FPO, which closed on Monday, got a subscription 3.6 times. The underwriting was 90% less than the issue in the retail category, but it saw strong demand in all other categories.

Shares of Ruchi Soya fell 6 per cent on Monday to close at 815 rupees. The company priced the FPO at 615 rupees and 650 rupees per share – 20 to 25 per cent lower than the previous close.

Patanjali Ayurvedic led by Baba Ramdev owns 98.9 per cent in Rochi Soya while the public owns only 1.1 per cent. With little free float, there are doubts about whether trading in Ruchi Soya’s shares leads to a fair price discovery.

After the FPO, Patanjali’s contribution is expected to decrease to 81 per cent, while the public contribution will rise to 19 per cent. Experts say the move will help the stock discover its fair price.

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