Ruchi Soya Industries received an unsolicited anonymous text message recommending it to exit from the deals. The deal was made between the company and SEBI (Securities and Exchange of India) regulators as much as Rs43bn to follow-on offering. It is quite strange because the investors can have their way to withdraw their bids based on the message information. Analysts worried that such message circulation from follow-on subscription could derail deals.
SEBI made the request, bankers concerned that any parties not related to the offering could potentially derail deals. According to IFR Asia, the message content was a good investment opportunity in Patanjali Group was the follow-on offer. The offer costs Rs615-Rs650 with 30% market price discount.
On March 30, the overall subscription crashed to 3.4 times. Two days before it showed another drop from 3.6 times. Many foreign institutions choose to withdraw, leading to another international coverage drop by 1.64 times from 2.2 times. Other fall follow, the high-net-worth subscriptions investor tranche fell to 11.71 times from 11.75 times. Retail also plunged to 0.84 from 0.90.
Local media reported that foreign portfolio investors had bid nearly 7.5m shares, but they canceled almost 97% of it, which is 7.2m. Before, the anchor investor agreed to purchase 19.8 shares. But this valuation is poor. Before they have 66.1m for the entire deal. But shares offered only a full 19.8m.
Foreign investors are Societe Generale, BNP Paribas, Oman’s Ministry of Defense, Pension Fund, Yas Takaful, MK Cohesion, UPS Group, and Alchemy, noted IFR Asia. Meanwhile, the domestic anchors include many notable institutions. They are ASK Investments, Kotak Mutual Fund, SBI Pension Fund, HDFC Life Insurance, SBI Life Insurance, as well as Authum Investment.
