SEBI gives investors option to withdraw Ruchi Soya’s bid

This is a rare instance of its kind, when the market regulator noticed some unsolicited messages urging users of Patanjali Ayurved Limited to invest in the said offer.

Good news for all the dear members of the Patanjali family. Good investment opportunity in Patanjali Group. Ruchi Soya Industries Limited, a Patanjali group company has opened a follow-on public offer (FPO) for retail investors. The issue will close on 28 March 2022. It is available in the price band- Rs 615-650 per share i.e. a discount of about 30 percent from the market price. You can apply for shares in your demat account through your bank/broker/ASBA/UPI”, the unsolicited message read.

In this regard, SEBI has directed principal banking managers to issue notices to all investors on Tuesday and Wednesday cautioning investors about such circulation of unwanted SMS in the form of advertisements in newspapers.

Last week, Ruchi Soya raised almost Rs. 4,300 crore through its follow-on public offer in an effort to make the company debt-free.

Sebi said the withdrawal would be available from March 28-30. Having said that the process of withdrawal should be disclosed to the investors. This should also be a part of advertisements, Sebi said.

Further, SEBI has asked the bankers to immediately inform the stock exchanges on the circulation of such unsolicited SMS. This disclosure must clearly state information regarding the window of withdrawal available to investors in the ongoing follow-on public offering.

An SMS should be sent to all the applicants of the received bids, informing them about the additional window for withdrawal of these bids, the regulator directed.

“As per regulatory norms, an offer cannot be made without referring to an offer document that the unsolicited SMS did. The company cannot also proactively specify about the discount, as it is not accurate in reality. Furthermore, according to the company the message cannot claim that the offer is a “good investment” unless verified by an independent source. SEBI’s promotional guidelines will also have to be followed.”

Baba Ramdev-led Ruchi Soya Industries’ follow-on public offer (FPO) has received 3.8x subscription on the last day of bidding. On Monday, the stock of Ruchi Soya was down 6.06% at Rs 815.05.

The follow-on public offer opened on March 24 and closed on Monday as the company seeks to comply with SEBI’s requirement of raising the minimum public stake to 10%.

Swaraj Singh Dhanjal contributed to the story