Ruchi Soya share price surges post rescheduling of board meet to fix FPO issue price
Premium- Ruchi Soya share price surged over 4% to ₹975 apiece on the BSE in Wednesday's early trading session
Shares of Ruchi Soya surged over 4% to ₹975 apiece on the BSE in Wednesday's early session after 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 ₹4,300 crore FPO (follow-on public offer) in view of Sebi's direction to allow withdrawal of investors' bids till Wednesday.
Capital markets regulator SEBI on Monday had asked bankers of Ruchi Soya to give an option to investors in its ongoing FPO of shares to withdraw their bids while also cautioning them about 'circulation of unsolicited SMS' about the share sale.
The development assumes significance as the share sale was already oversubscribed 3.6 times and withdrawal of bids can have a bearing on the final numbers.
According to a regulatory filing, 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 claimed this message has not been issued by it or any of its directors, promoters, promoter group or group companies.
Ruchi Soya came out with the FPO to meet Sebi's minimum public shareholding norm of 25% in a listed entity. The company said it 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.
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In August last year, the company had received capital markets regulator Sebi's go-ahead to launch the FPO. It had filed the draft red herring prospectus (DRHP) in June 2021. In 2019, Patanjali acquired Ruchi Soya, which is listed on the stock exchanges, through an insolvency process for ₹4,350 crore.
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