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

Shares of Ruchi Soya surged on Tuesday after the company clarified that the SMSes pertaining to investments in its FPO have not been issued by the company or its promoters

Baba Ramdev-led Patanjali group's Ruchi Soya Industries on Tuesday said it has rescheduled its board meeting on March 31 to fix issue price of its Rs 4,300 crore FPO (follow-on public offer) in view of markets regulator Sebi's direction to allow withdrawal of investors' bids till Wednesday.

On Monday, the Securities and Exchange Board of india (Sebi) asked bankers of Ruchi Soya to give an option to investors, who participated in the FPO, to withdraw their bids while also cautioning them about "circulation of an unsolicited SMS" about the share sale.

"In light of the Sebi letter directing to keep the window for withdrawal open till March 30, 2022, we will like to inform you that the 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," Ruchi Soya said in a regulatory filing.

Shares of Ruchi Soya surged on Tuesday after the company, through newspaper advertisements, clarified that the SMSes pertaining to investments in its FPO have not been issued by the company or its promoters.

On Tuesday, the shares of the company settled 15.9 per cent higher at Rs 945.

On Monday, Ruchi Soya Industries Ltd informed the regulator and stock exchanges that it has come across some messages on social media "speculating" about investment opportunities in the FPO and the company shares being available at discount to the market price.

The company said this message has not been issued by it or any of its directors, promoters, promoter group or group companies.

It further said that an FIR has been lodged by the company in Haridwar to investigate these messages under the IT Act and Section 420 of the IPC.

"As directed by Sebi, we wish to bring to attention of the investors that all bidders (other than anchor investors) have an option to withdraw their bids from March 28, 2022, till March 30, 2022," Ruchi Soya said.

"Investors should further note that bidding in the issue is closed on March 28, 2022, and accordingly no further bids will be accepted in the issue. Any bids, after the bid/issue closure will be rejected," it added.

This regulatory filing followed a direction issued by Sebi after a meeting held earlier in the day with the bankers managing the FPO.

Sebi asked bankers to issue an advertisement in newspapers on Tuesday and Wednesday, cautioning investors about the circulation of SMS.

Besides, Sebi asked bankers to give an option to investors to withdraw their already placed bids till March 30.

The issue opened on March 24 and was subscribed 3.6 times till its scheduled closing on Monday.

The company has already raised Rs 1,290 crore from anchor investors.