Sebi directs Ruchi Soya to allow FPO investors to withdraw bids

Circulation of unsolicited SMSes advertising the issue violates regulations, says the market regulator; Sebi orders a 3-day window for all investors (ex-anchor Investors) to withdraw applications

The Securities and Exchange Board of India (Sebi) has directed Ruchi Soya Industries to give the investors who participated in its Rs 4,300-crore follow-on public offering (FPO) the option to withdraw their bids due to “circulation of unsolicited SMSes advertising the issue”.

In a letter to the three investment bankers handling the share sale, the market regulator has said prima facie the contents of these SMSes appear to be “misleading/fraudulent” and not in consonance with the ICDR (Issue of Capital and Disclosure Requirements) Regulations.

According to sources, the SMSes pitched the FPO as a good investment opportunity in Patanjali Group. Business Standard