Ruchi Soya shares rise 20% as company clarifies unsolicited SMS regarding FPO not issued by it

Shares of Ruchi Soya Industries surged 20 per cent in the intraday trade on Tuesday and later trimmed some of their gains after the company informed that the unsolicited SMS related to its follow-on public offering (FPO) has not been issued by the firm or any of its directors, promoters, promoter group or group companies.

Earlier in the session, the scrip hit a 20 per cent upper circuit in both the BSE and National Stock Exchange (NSE) earlier in the day. On the BSE it touched a high of Rs 978.05 while on NSE, it rose to Rs 977.15.

At 2:52 pm, the stock was at Rs 913.10, up Rs 98.80 (12.13 per cent) from its previous close while on BSE it was trading at Rs 911.50, up Rs 96.45 (11.83 per cent).

In an exchange filing, Ruchi Soya Industries said, “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…A first information report bearing No. 0188 dated March 27, 2022 (“FIR”) has been lodged by our Company with a police station at Haridwar to take up investigation in respect to circulation of the Message, under Section 67A of the Information Technology Act, 2000 and section 420 of the Indian Penal Code, 1860.”

The Rs 4,300 crore FPO of the Patanjali Group-owned company had got subscribed 3.60 times on Monday. After this, market regulator Sebi later in the evening asked Ruchi Soya Industries to give the option to the investors in the follow-on public offer (FPO) to withdraw their bids due to “circulation of unsolicited SMSs advertising the issue”.

In a directive to the investment bankers to the issue, the regulator has said prima-facie the contents of the unsolicited SMS appear to be “misleading/fraudulent” and “not in consonance” with Sebi regulations. The window for withdrawal will be available on March 28-30, 2022.

In a separate clarification by the BSE on data related to the FPO, the exchange has informed that it displays cumulative bids of both exchanges (BSE and NSE) every three minutes. “Ruchi Soya FPO extended for two days for only withdrawal of bids as per SEBI’s directive. Since this was sudden change of process and system had to consider these changes, for few updates in Cumulative Bids Details section only BSE Bids data was shown instead of Cumulative data of both the Exchanges.”

The same was restored to previous day data, BSE said.

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