Ruchi Soya’s Rs 4,300-crore follow-on public offering (FPO) came to a close for subscription on March 28. But despite the subscription period coming to a close, under direction from the Securities Exchange Board of India (SEBI), the company has allowed investors to withdraw their bids for the FPO. The order was passed over the controversy of aggressive unsolicited messages for the FPO, which the company claimed it had not sent.
The unsolicited message
“Great news for all beloved members of Patanjali parivar. A good investment opportunity in Patanjali Group. Patanjali Group company-Ruchi Soya Industries Ltd has opened the Follow-On Public offer (FPO) for retail investors. The issue closes on 28 March 2022. This is available in the price band- Rs 615-650 rupees per share, i.e discount of about 30% to market price. You can apply for shares through your bank/ broker/ ASBA/UPI in your Demat account," the unsolicited message read.
While SEBI is relaxed when it comes to companies advertising their public offers, as long as the they provide the necessary details as required under the ICDR (Issue of Capital and Disclosure Requirements) Regulations, it found this kind of messaging out of place. Ruchi Soya has now stated that it has filed an FIR over the messages.
How to withdraw bids
The investors who wish to withdraw their bids have until March 30, 2022 to do so. Under the SEBI order, all the applicants whose bids have been received by the company were sent a new SMS informing them about the additional window provided to withdraw their bids.
To withdraw their bids, the investors need to log in to their chosen stock broker’s platform, whether that’s a full-service broker or a discount broker. On logging in, investors would be able to withdraw by navigating to the IPO section. Additional details will be provided by the respective stockbroking platforms.
“If you wish to withdraw your bids, the option for the same has been opened on Groww. Go to the IPO section of the Groww app or website, click on Ruchi Soya FPO, and you will get an option to withdraw your bids if you had earlier applied for the offer,” stated online broker Groww on its support page.
“Withdrawal requests can be placed till 2 PM on March 30th, 2022 by creating a ticket on our support portal here with the 14-digit FPO application number. The application number can be found on your registered email ID,” stated the country’s biggest stockbroker, Zerodha.