Ruchi Soya board meeting postponed to March 31 to fix FPO issue price

Ruchi Soya board meeting postponed to March 31 to fix FPO issue price (Source: The Indian Express)
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Angana Pal Chinya

Patanjali Ayurveda-owned Ruchi Soya Industries has rescheduled their meeting to 31st March, which was initially supposed to be held on March 29.

It came a day after market regulator SEBI urged the bankers of Baba Ramdev-led Patanjali group’s company to give investors in its ongoing FPO the option to withdraw their bids while also warning them about the transmission of unsolicited SMS about the sale. Also, SEBI has directed a three-day withdrawal window to run from March 28 to March 30.

Ruchi Soya’s follow-on public offer, which closed on March 28, was subscribed 3.6 times, with bids for 17.60 crore equity shares received against a total of 4.89 crore equity shares.

Earlier today, the company clarified the message in circulation on social media, speculating about investment opportunities in the company’s issue.

In a message, Ruchi Soya said that they wish to draw the attention of investors that this statement wasn’t issued by their firm or any of their directors, promoters, promoter group, or group companies.

According to Ruchi Soya, a first information report was filed on March 27 at a police station in Haridwar by the company in order to begin an investigation into the circulating message. On Tuesday, Ruchi Soya shares closed nearly 16 per cent higher at Rs 944.95 per share on BSE. 

The withdrawal of bids may have an effect on the final numbers since the share sale was already oversubscribed by 3.6 times. On the final day of the auction, the FPO received bids for 17.56 crore equity shares versus a limit of 4.89 crores. A 90 per cent subscription to the retail quota, which comprises 35 per cent of the issue, was recorded. The extension of FPO also created a lot of confusion as to accommodate such changes in such a short period affects the details of the cumulative bid. Every three minutes, the stock exchange displays cumulative bids for both exchanges.