InvestorQ : How were the last day subscription to the Ruchi Soya FPO?
Mary Joseph made post

How were the last day subscription to the Ruchi Soya FPO?

Arusha Ray answered.
1 year ago

The Rs.4,300 crore FPO of Ruchi Soya, comprising entirely of a fresh issue of shares, was subscribed 3.60 times overall at the end of the third day after a very tepid response in the first two days. It was HNI demand that drove the IPO followed by QIB demand while the retail portion actually got undersubscribed when the issue closed on 28th March. Out of the overall 489.46 lakh shares on offer, Ruchi Soya got bids for 1,760.69 lakh shares; implying an overall subscription of 3.60 times.

Ahead of the FPO opening, Ruchi Soya did an anchor placement of 1,98,43,153 shares at the upper end of the price band of Rs.650 to 46 anchor investors worth Rs.1,290 crore. Some well known anchors included YAS TAKAUL, SBI Life, Societe Generale, Volrado Fund, Quant Fund, Kotak MF, Birla MF, Alchemy, ASK India, HDFC Life Insurance.

The anchor allocation worked to around 30% of the overall FPO of Ruchi Soya. QIB portion (net of anchor allocation as explained above) got subscriptions of 308.28 lakh shares out of the QIB residual quota of 139.82 lakh shares, implying 2.20 times subscription for QIBs.

The HNI portion was subscribed 11.75 times. The NII / HNI portion got applications for 1,232.05 lakh shares against the available quota of 104.86 lakh shares. Bulk of the funded applications and corporate applications, come in on the last day of the FPO which is the normal practice in such cases.

The retail portion was subscribed just 0.90X or 90% at close of Day. Out of the retail quota of 244.68 lakh shares on offer, valid bids were received for 219.58 lakh shares, which also had bids for 178.93 lakh shares at cut-off price. However, these numbers could now change as SEBI has given the shareholders leeway to withdraw their bids from the FPO up to 30th March. This was necessitated after SMS messages were sent to retail investors inducing them to invest in the Ruchi Soya FPO. This is contrary to extant SEBI regulations.