Market regulator Securities Exchange Board of India (SEBI) on Monday directed Patanjali Ayurved-owned Ruchi Soya to provide an option to all investors (except anchor investors) in its follow-on public offer (FPO) to withdraw their bids due to "circulation of unsolicited SMSs advertising the issue".
The regulator said that prima-facie, the contents appear to be "misleading/ fraudulent" and not in consonance with SEBI (ICDR) Regulations, 2018.
The window for withdrawal shall be available on March 28, 29 and 30.
As per the order, a notice to investors shall be issued in the form of an advertisement in the newspapers cautioning them about the circulation of unsolicited SMSs. The notice will be issued on March 29, 30, Ruchi Soya said in a regulatory filing.
Further, an SMS is to be sent to all the applicants of the received bids, informing them of the additional window of withdrawal made available to them. "Stock exchanges and depositories shall provide all information necessary for completion of the agreed action points," the company added.
Ruchi Soya FPO was subscribed 3.6 times on the last day of the issue on Monday. The FPO received bids for 17.56 crore equity shares against the size of 4.89 crore equity shares on the final day. The retail quota, which constitutes 35 per cent of the issue, saw subscription of 90 per cent.
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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 utilise 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.
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