NEW DELHI: Share of edible oil maker Ruchi Soya surged on Tuesday after the Securities and Exchange Board of India (Sebi) gave investors an option to withdraw their applications from the company's follow-on public offering (FPO).
Stocks of Baba Ramdev-led Patanjali group's company surged as much as 20 per cent during the day's trade to hit the upper circuit both on the BSE as well as the NSE, touching a high of Rs 978.05 and Rs 977.15, respectively.
The shares then parred some gains before closing nearly 16 per cent higher at Rs 944.95 per cent on the benchmark BSE sensex. The scrip closed 15.19 per cent higher at Rs 938 on the broader NSE Nifty.
The stock had fallen more than 9 per cent in the bidding period over the last three sessions.
On Monday, Sebi gave 3 days window to investors to withdraw their bids while also cautioning them about "circulation of unsolicited SMS" about the share sale.
According to a regulatory filing, Ruchi Soya Industries Ltd informed the regulator and stock exchanges 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 this message has not been issued by it or any of its directors, promoters, promoter group or group companies.
It further said that an FIR has been lodged by the company in Haridwar to investigate these messages under the IT Act and Section 420 of the IPC.
The development assumed significance as the share sale was already oversubscribed 3.6 times and withdrawal of bids can have a bearing on the final numbers.
The issue opened on March 24 and the subscription level was 3.6 times at the close of the scheduled closing on March 28.
The company has already raised Rs 1,290 crore from anchor investors.
The quota for Qualified Institutional Buyers (QIBs) was subscribed 2.20 times while that of non-institutional investors received 11.75 times subscription.
The portion set aside for retail individual investors was subscribed 90 per cent, as per the data.
Ruchi Soya Industries has come out with the FPO to meet Sebi's minimum public shareholding norm of 25 per cent in a listed entity.
(With inputs from agencies)
