Shares of Ruchi Soya Industries (Ruchi Soya) on Wednesday crashed more than 19 per cent during intra-day trades after the Patanjali Ayurved backed firm announced allotment of shares for its follow on offering (FPO).

Though the scrip recovered some of the losses, it still ended with double digit cuts at the bourses on the BSE, the share settled at Rs 754.75-a drop of 13.79 per cent after falling to the day’s low of Rs 706. Similarly, at the NSE, the share finished at Rs 749.85 thus showing a fall of 14.34 per cent over the previous close.

The crash came after the company announced the allotment of shares for its FPO. Ruchi Soya said that it has allotted 6,61,53,846 equity shares aggregating to Rs 4,300 crores. Following the allotment, the company’s paid-up equity share capital has risen from Rs 59,16,82,014 to Rs 72,39,89,706. The allotment price was fixed at Rs 650 per share which was the upper limit of the price band of Rs 615-650 per share

Earlier PTI had reported that nearly 97 lakh bids were withdrawn in its FPO after Securities and Exchange Board of India (SEBI) directed the company to give investors the option to withdraw their bids.

This market regulator’s decision came due to ``the circulation of unsolicited SMSs advertising the issue, prima-facie the contents of which appear to be misleading/fraudulent and not in consonance with Sebi (ICDR) Regulations, 2018’’.