Ruchi Soya fixes issue price at ₹650; nearly 97 lakh bids withdrawn

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Nearly 97 lakh bids were withdrawn in Ruchi Soya Industries’ follow on public offer after markets watchdog Sebi had directed the company to give investors the option to withdraw their bids, news agency PTI reported.

However, the Follow on Public Offer (FPO) is complete.

Ruchi Soya hit the capital market with its FPO on March 24 to raise 4,300 crore as it aims to become a debt-free company. Ruchi Soya today fixed the issue price of its FPO at the upper limit of its price band at 650 per equity share to raise 4,300 crore.

The company had already raised 1,290 crore from anchor investors last week by issuing around 1.98 crore shares. Ruchi Soya shares closed at 955.60 apiece on the BSE, down 2.23%.

In a rare move, Sebi, on March 28, had asked bankers of Baba Ramdev-led Patanjali group’s Ruchi Soya to give an option to investors in its FPO to withdraw their bids while also cautioning them about the “circulation of unsolicited SMS” about the share sale.

The FPO closed on March 28 and the withdrawal window was open for two days till March 30 as per the Sebi directive.

The PTI report said the the subscription of the offer came down to 3.39 times on March 30 from 3.6 times, which was the level when the offer closed on March 28. This reflects that around 97 lakh bids were withdrawn, primarily by foreign investors.

On March 28, more than 17.60 crore bids had come in for the FPO whereas the number of shares on offer was little over 4.89 crore.

The price band for the offer was 615-650 per share.

On Sebi’s directions, bankers issued an advertisement in newspapers on Tuesday and Wednesday (March 29, 30) cautioning investors about the circulation of SMSes and also asked to give an option to investors to withdraw their already placed bids till March 30.

Ruchi Soya came out with the FPO in order to meet the minimum public shareholding norm of 25% as required for a listed entity.

The company would utilise the entire issue proceeds for furthering its business by repayment of certain outstanding loans, meeting its incremental working capital requirements and other general corporate purposes, according to the Draft Red Herring Prospectus.

In 2019, Patanjali acquired Ruchi Soya through an insolvency process for 4,350 crore.

(With inputs from PTI)

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