Market regulator Securities and Exchange Board of India directed Ruchi Soya to give investors the option to withdraw their follow-on public offer (FPO) bids between March 28-30.
An SMS will be sent to all the applicants of the received bids, informing them of the additional window of withdrawal. Notice to investors shall be issued in the form of an advertisement in the newspapers, which will be issued on March 29 and March 30, 2022, said the firm in an exchange filing.
The FPO, which opened on March 24 and closed on March 28 (Monday), garnered 3.6 times subscriptions, including around 90 percent subscriptions in the retail portion. However, the new Sebi order could delay the listing process.
Post the Sebi announcement, subscription numbers came down as investors across categories began to withdraw their bids.
The total subscription of Ruchi Soya Industries' FPO declined to 2.58 times from 3.59 times. In the qualified institutional buyer (QIB) category, the subscription fell to 1.6 times from 2.2 times, in the non-institutional investor category, it fell to 9 times from 11.75 times and in the retail section, it fell to 40 percent from 90 percent earlier.
The regulator asked the firm to give an option to investors to withdraw their bids citing "circulation of unsolicited SMS" about the share sale.
In clarification, Ruchi Soya Industries said 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 the message has not been issued by it or any of its directors, promoters or group companies. It added that bidders will have the option to withdraw their bids from March 28 till March 30. The company said that no fresh bids will be accepted as the subscription window has closed.
How to withdraw your bid
In order to withdraw your bid, first, log in to your brokerage account and go to your IPO/FPO page which reflects your placed bid.
There will be an 'unsubscribe/withdraw' option against Ruchi Soya, which will only be available on March 29 and March 30, if you want to want to withdraw your bid.
To withdraw, you click on that option.
You will be asked for an OTP which will be sent to your registered Mobile Number. Enter the OTP and your bid will be withdrawn.
The money held for your bid will then reflect back in your account.