The follow-on offer of Ruchi Soya Industries met with a minor setback with cancellation of 14,583 applications for bids totalling to 97,40,829 shares worth about ₹633 crore.

The two-day window for withdrawal of application for bids was opened by SEBI following circulation of unsolicited SMS prodding investors to bid for the shares. The online advertisement apparently promoted the issue by providing misleading and fraudulent information. The company had proposed to raise ₹4,300 crore through the FPO. The window for withdrawal, which was closed on March 30, was opened for all, except for anchor investors.

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Interestingly, foreign institutional investors have cancelled 97 per cent of their bids totalling 72.43 lakh shares against their bid for 74.51 lakh shares, while retail investors cancelled bids for 15.08 lakh shares against their overall bid of 2.19 crore shares.

Mutual funds and institutional investors did not cancel any of their bids even while other category of institutional bidders withdrew bids for 6.15 lakh shares against their bid for 1.52 crore shares. High networth individual investors and corporates have cancelled 1.07 lakh shares and 1.74 lakh shares against their bids for 8.36 crore shares and 2.09 crore shares.

Overall subscription down

Overall subscription fell to 3.39 times compared to 3.6 times announced by the company when the issue closed on March 28. The finalisation of the basis for allocation of the shares will be done on April 5 taking into account the remaining bids.

Shares of the company fell two per cent to ₹956 on Thursday.

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