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    Ruchi Soya rallies 20% after co clarifies SMSes relating to FPO not issued by it

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    Ruchi Soya rallies 20% after co clarifies SMSes relating to FPO not issued by it

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    Ruchi Soya shares gain: Shares of Ruchi Soya Industries jumped 20 percent to Rs 978 in intra-day trade on Tuesday, but later trimmed gains when the firm stated that the SMSs referring to investments in its follow-on public offering (FPO) were not sent by the company or its founders. The stock snapped its 4-day losing run, having fallen 11 percent during the period.

    Shares of Ruchi Soya Industries jumped 20 percent to Rs 978 in intra-day trade on Tuesday, but later trimmed gains when the firm stated that the SMSs referring to investments in its follow-on public offering (FPO) were not sent by the company or its founders.
    At 11:00 am, shares of the company were up 12 percent at Rs 918.80 on the BSE, as against a 0.38 percent rise in the benchmark S&P BSE Sensex.
    The stock has snapped its 4-day losing run, having fallen 11 percent during the period. The benchmark 30-scrip Sensex, meanwhile, slipped 0.6 percent during the period.
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    "We understand that there is an SMS/message in circulation on 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. We wish to bring to the 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," said Ruchi Soya in a filing with BSE.
    Ruchi Soya also said that the company has filed a first information report (FIR) with a police station at Haridwar to take up the investigation in respect of the message, under section 67A of the Information Technology Act, 2000 and section 420 of the Indian Penal Code, 1860.
    The development comes after the Securities and Exchange Board of India (Sebi) directed Ruchi Soya to give the investors who participated in its FPO the option to withdraw their bids due to the "circulation of unsolicited SMSes advertising the issue".
    Ruchi Soya’s Rs 4,300 crore FPO has been oversubscribed with the issue receiving bids 3.6 times of the shares on offer.
    JN Gupta, Former ED, SEBI and MD, Stakeholders Empowerment Services told CNBC-TV18 that he doesn’t recall seeing anything similar to SEBI’s action on Ruchi Soya in the last 4-5 years. He explained that Ruchi Soya’s price is not a fairly discovered price because of its low float.
    “Where the floating has stopped, the price is not a fairly discovered price because of low volume and everything else,” said Gupta.
    Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
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