Ruchi Soya’s Rs 4,300-crore FPO ended yesterday but in an unusual development, investors have now been allowed to withdraw their bids. Market Regulator SEBI directed the company to allow investors to withdraw their bids after it came to SEBI’s notice that unsolicited SMSes advertising the issue were circulated during the days of bidding for the FPO. The issue was subscribed a total of 3.6 times by investors, bidding for 17.6 crore equity shares till yesterday evening, against the 4.89 crore on offer. Now, investors will be able to withdraw their bids for the FPO till tomorrow, March 30, 2022 evening. Ruchi Soya shares surged 20% on Tuesday to hit the upper circuit at Rs 978 per share.
How to withdraw bids?
Investors who used online platforms of their stockbrokers to apply for the Follow-on public offer (FPO) can log in to online portals to withdraw or cancel their bids. They will find the option to withdraw or cancel their bids for Ruchi Soya FPO under the respective sections. Ruchi Soya, in an exchange communication, said that investors can submit a request for withdrawal to the concerned Designated Intermediary, who shall assist in such withdrawal of bid cum application form, prior to the finalization of the Basis of Allotment.
Investors who have used offline channels to bid for the issue will have to contact their broker and enquire about the process they need to follow.
Should you withdraw your FPO bid?
So far, data available on the exchanges only shows the number of shares bid for by investors till the close of FPO yesterday evening. Market experts said that data on withdrawals may be updated at the end of the day. Only then can it be gauged how many have pulled out their investments post SEBI directive. However, analysts who had earlier given a ‘Subscribe’ rating to the issue do not seem to be changing their investment advice on the same. Analysts at Marwadi Shares and Finance reiterated their earlier rating of ‘Subscribe’.
BSE in a statement issued earlier in the day clarified that for a few updates, the cumulative tab showed bidding data for BSE only. “… for few updates in Cumulative Bids Details section only BSE Bids data was shown instead of Cumulative data of both the Exchanges,” BSE said. However, now the problem has been rectified to show the previous day’s data.
SEBI steps in
Capital market watchdog SEBI stepped in yesterday after noticing that SMSes were circulated by unknown parties about the FPO of the company. According to market sources, the message termed the FPO as “a good investment opportunity”. Investors can now withdraw their bids till tomorrow, 5 PM. Accordingly, T+1 Post Issue Modification shall be on March 31, 2022, between 10:00 am to 11:00 am.