SEBI has allowed all types of investors to withdraw their bids from Ruchi Soya’s FPO. Only anchor investors have not been allowed this. But, some experts believe that institutional investors and HNIs should not have been allowed this. JN Gupta, founder of Stakeholders Empowerment Services and former executive director of SEBI, SEBI should not have allowed HNIs and institutional buyers to do so.
Institutional investors do not take decisions under any pressure
Gupta told CNBC-TV18, “I believe that institutional investors and HNIs will not take investment decisions on the basis of an SMS. Only gullible investors or some employees of the company can be under any kind of pressure to bid in FPOs. “
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SEBI has given order on March 28
SEBI on March 28 has given investors the option to withdraw their bids from the FPO of Ruchi Soya. Ruchi Soya is going to raise Rs 4,300 crore from this FPO. It took this decision after it came across an SMS promoting the issue. This message was sent to the users of Patanjali Ayurved. In this, he was asked to invest in the company’s offer.
What is said in the SMS?
It was also said in this message that this issue gives an opportunity to buy shares of the company between Rs 615 to 650. This is 30 percent cheaper than the market price of the company’s shares. However, Gupta believes that the share price of Ruchi Soya is not properly determined due to less number of floating shares.
Investors can withdraw bids till March 30
Following the instructions of SEBI, investors can withdraw their bids from this offer till March 30. Gupta believes that this window of 3 days should be from 29 to 31 March. The reason for this is that the investors did not have any information about this message on March 28. On the other hand, Zerodha’s co-founder Nikhil Kamat says that the share price of Ruchi Soya is looking low compared to rival companies.
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