Data provided by the exchanges showed that foreign portfolio investors (FPIs) canceled more than 97 percent of their IPO bids to follow up on Ruchi Soya during the two-day withdrawal period. The data show that direct investment institutions made an offer to buy nearly 7.5 million shares, of which 7.2 million were canceled. The number of bids withdrawn in the other categories was relatively silent.
Individual investors withdrew 569,835 bids (2.6% of their total bids), high net worth individuals withdrew 1.3 million (1.1%) and employees 3,759 (4.84%). Investment funds have not withdrawn any bids. Overall, the subscription to FPO decreased from 3.6 times to 3.4 times. A total of 14,583 applications filed with the FPO were canceled.
FPO Ruchi Soya is closed on Monday. However, the market regulator, the Securities and Exchange Board of India (Sebi), has directed the company to give investors the option to withdraw their bids until Wednesday due to “the circulation of spam advertising issue”.
Through the FPO, Ruchi Soya raised Rs 4,300 crore, which will be used to trim the avalanche. Patanjali Ayurveda led by Baba Ramdev holds a 98.9 percent stake in Ruchi Soya, while the public owns only 1.1 percent. After the FPO, Patanjali’s contribution is expected to decrease to 81 per cent, while the public contribution will rise to 19 per cent. The price range for FPO was Rs 615 – Rs 650 per share. Shares of Ruchi Soya last closed at 956 rupees, down 2.2 per cent.