Corporate Grapevine

Published: Dec 29, 2021
Updated: Dec 29, 2021

Probe unlikely to hinder mega issues of ABG MF, Ruchi Soya

Two mega share sales by Aditya Birla Asset Management and Ruchi Soya are facing regulatory delays. While market regulator SEBI is probing the role of Aditya Birla Finance’s management in giving loans to dubious companies like CG Power, Ruchi Soya, now owned by the Patanjali group, is under scrutiny for a low float. The CBI and the ED are also investigating CG Power and questioning top officials of the company. Both companies are powerful in New Delhi and have started lobbying with top officials in the finance ministry to get their respective share sales cleared.

Considering that Indian regulators are not so ‘independent’ and can buckle under pressure, it’s probably a matter of time before both mega issues hit the market.