Shares of Ruchi Soya surged on Tuesday after the company, through newspaper advertisements, clarified that the SMSes pertaining to investments in its follow-on public offering (FPO) have not been issued by the company or its promoters.
The advertisements reportedly came after market regulator Securities and Exchange Board of India (SEBI) directed the company 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”.
“There is a SMS/message in circulation in social media, speculating about investment opportunity in our Company’s Issue and about equity shares of our Company being available at discount to the market price (‘message’). 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,” Ruchi Soya said in a statement.
Besides, an FIR has been lodged to take up investigation against the circulation of unsolicited messages, the statement added.
On Tuesday, the shares of the company settled 15.2 per cent higher at Rs 938.
The diversified FMCG company launched its follow-on public offer on March 24.
A follow-on offering is an issuance of additional shares made by a company after an initial public offering.
Entire proceeds from the issue will be used for furthering the company’s business by repayment of certain outstanding loans, meeting its incremental working capital requirements and other general corporate purposes, the company said earlier.
Ruchi Soya’s Ruchi Gold brand is the market leader in branded palm oil and the company is also the pioneer of soya foods in India under the brand name Nutrela.