A charade called Ruchi Soya

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Editor's note: This is the seventh edition of Street Smart, The Morning Context’s weekly newsletter on everything that impacts corporate India. Every Thursday, Street Smart will bring you an original, reported or analytical take on issues that have the potential to shake up the business ecosystem. Jayshree here. Three weeks ago, I had written about the perils of trading in the stock of a bankrupt company. The company was DHFL. I had said: “Retail investors were flocking to the stock, influenced by tips on social media that seemed to suggest that the stock was headed the ‘Ruchi Soya way’.” As it turns out, the sham—or opportunity as some would rather call it—at the Ruchi Soya counter is not over. It’s something that has disturbed, and irked, me no end. Here’s why.  Ruchi Soya Industries Ltd, a company which had gone bankrupt in 2019, now commands a valuation of Rs 33,255 crore. If you’ve been observing the public markets for as long as we have, you know this is either a scam or an opportunity. The objective of this week’s Street Smart is …