FPIs claw back 97% of bids in Ruchi Soya’s FPO

Foreign portfolio investors (FPIs) withdrew 97% of their bids after the market regulator allowed withdrawal of bids in the follow-on public offering (FPO) of Ruchi Soya Industries, data available on BSE showed. High net-worth individuals (HNIs) withdrew 1.1% (1.3 million) bids, employees pulled back 4.84% (3,759) bids, while retail investors withdrew 2.6% (569,835) bids during the two-day withdrawal period. However, no bids were withdrawn by domestic institutions and mutual funds during the period.

Ruchi Soya’s Rs 4,300 crore FPO saw an overall cancellation of 14,583 bids between March 28 to March 30, aggregating to a total of 9.7 million shares or Rs 633 crore. The overall FPO subscription fell from 3.6 times (before withdrawal) to 3.39 times as on March 30.

The Securities and Exchange Board of India (Sebi) on March 28 had ordered the company to open a two-day withdrawal window for all investors (except anchor book participants) after the regulator had found unsolicited and fraudulent messages, promoting the FPO, being circulated across to attract investors.

Post the Sebi order, Ruchi Soya had filed a first information report at Haridwar to find our the origin of the circulation of messages. “We wish to bring to 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,” the company said in an exchange filing on March 28.

According to the updated schedule of the FPO, the finalisation of basis of allotment will be done on April 5, and the trading of shares will commence on April 8. On Thursday, shares of Ruchi Soya ended lower by 2.2% at Rs 955.60.