New Delhi: The board meeting of Ruchi Soya Industries, which is embroiled in controversy due to the follow-on offer, has been postponed till March 31. The issue price of the FPO was to be decided in this meeting to be held on Tuesday 29 May.
Meeting postponed due to the move of SEBI
Markets regulator SEBI (Stock Exchange Board of India) took action against the company, immediately after the closure of the FPO on March 28, providing the option to its investors to withdraw the bid. SEBI took this unexpected step in the company’s efforts to induce investors to invest in the wrong way. Investors investing in this FPO can withdraw their bids till March 30. For this reason, it was decided by the company to postpone the board meeting.
The share price will be decided in the meeting
Now this meeting will be held on 31st March. In that, it will be decided at what rate the shares should be issued to the investors. Under the FPO, its issue price was fixed at Rs 615-650. After being embroiled in controversies, there is also a possibility that shares can be issued to investors only around the minimum level of issue price (Rs 615). However, on Tuesday, the company’s stock closed at Rs 938.
Ruchi Soya had introduced an FPO of Rs 4,300 crore last week to become debt-free and meet the shareholding norms of SEBI. This FPO got less response than expected. After that, the order of SEBI created new trouble for the company.
