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    Ruchi Soya rollercoaster ride: What's Patanjali-owned company up to & why SEBI stepped in

    Ruchi Soya rollercoaster ride: What's Patanjali-owned company up to & why SEBI stepped in

    Ruchi Soya rollercoaster ride: What's Patanjali-owned company up to & why SEBI stepped in
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    By CNBCTV18.com  IST (Updated)

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    Ruchi Soya’s FPO has been marred by strange occurrences and volatile stock movements, with SEBI finally intervening with an unprecedented order.

    Ruchi Soya’s stock has had a rollercoaster ride over the past few days as the company’s follow-on public offering (FPO) came to a close for subscription on March 28. The company’s stock rallied by 15.94 percent to close at Rs 944.95 apiece on the Bombay Stock Exchange (BSE), while its price on the National Stock Exchange (NSE) closed at Rs 938, a rally of 15.19 percent. Intraday prices had soared to Rs 978.05 on the BSE, a surge of 19.99 percent.

    The company’s stock had been steadily eroding over the past few days. Ruchi Soya’s share prices were down by 10.73 percent over the past four days. But a strong subscription for the FPO has buoyed investor sentiments. The Rs 4,300-crore FPO was subscribed to 3.60x on the final day of the FPO.

    While the FPO is closed for subscription, the Securities Exchange Board of India (SEBI) had asked the Patanjali Ayurved-owned company to allow subscribers to withdraw their bids, which subscribers can do until March 30.

    The order was passed by SEBI after unsolicited messages were aggressively advertising the FPO. While the SEBI is relaxed when it comes to companies advertising their public offers, as long as the company provides the necessary details as required under the ICDR (Issue of Capital and Disclosure Requirements) Regulations.

    At the same time, Ruchi Soya has added that it has also lodged an FIR against the unsolicited messages as they were not sent by the company. Though this is not the first time that the company has landed in trouble over its investment advertisement, with the SEBI warning the company and Baba Ramdev over his claims of becoming crorepatis by investing in Ruchi Soya in October 2021.

    There was a bit of a snafu with the BSE cumulative demand page, where subscription levels were being reflected wrongly as well. The FPO subscription levels were being reflected at 2.58x compared with 3.6x, causing concern among investors before the matter was resolved by the BSE.

    "The exchange displays cumulative bids of both exchanges every 3 minutes. Ruchi Soya FPO extended for two days for only withdrawal of bids as per Sebi's directive," the BSE said in a statement.

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