Ruchi Soya FPO: Company postpones board meeting to fix issue price

Patanjali Ayurved-owned Ruchi Soya Industries has rescheduled its board meeting to March 31 to determine the issue price and anchor investor issue price for its follow-on public offer (FPO). The meeting was initially scheduled for today, March 29.

The announcement came a day after market regulator Securities and Exchange Board of India (SEBI) asked the bankers of Baba Ramdev-led Patanjali group's company to give an option to investors in its ongoing FPO to withdraw their bids while also cautioning them about "circulation of unsolicited SMS" about the share sale. SEBI also directed that the withdrawal window will remain open for three days from March 28 till March 30.

"In light of the SEBI letter dated March 28, 2022, directing to keep the window for withdrawal open till March 30, 2022, we will like to inform you that the aforesaid board meeting proposed to be held on March 29, 2022 has been rescheduled and now it will be held on March 31, 2022 for the purposes of determining the issue price and the anchor investor issue price," the company informed in a regulatory filing.

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Earlier today, the company clarified the message in circulation in social media, speculating about investment opportunities in the company’s issue. Ruch Soya said the message was not issued by it, and an FIR has been lodged regarding the same.

"We understand that there is an SMS/message in circulation in social media, speculating about investment opportunity in our company’s issue and about equity shares of our company being available at discount to the market price (“Message”). We wish to bring to attention of the investors that this message has not been issued by our company or any of our directors, promoters, promoter group or group companies,” it said in a filing to the BSE.

Ruchi Soya added that a first information report was filed on March 27 by the company at a police station in Haridwar to take up investigation of the circulating message.

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Shares of Ruchi Soya on Tuesday closed nearly 16 per cent higher at Rs 944.95 apiece on the BSE.

The development assumes significance as the share sale was already oversubscribed 3.6 times and withdrawal of bids can have a bearing on the final numbers. 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.

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.