Shares of Ruchi Soya Industries took a severe beating on the bourses on Wednesday as it plummeted nearly 19 percent in early deals and was slowly recovering the lost ground as trading progressed during the day.
The fall came a day after the company announced allotment of shares under the Rs 4,300 crore-Follow on Public Offer (FPO) which had also come under regulatory lens for certain issues.
On the BSE, the scrip opened at Rs 706 apiece, which was also its intra-day low. Reflecting significant volatility, the share also touched an intra-day high of Rs 815.
In afternoon trade, Ruchi Soya was down nearly 9 percent to Rs 797.50 apiece on the BSE as the company seemed to be recouping the losses.
On the NSE too, the shares declined over 9 percent to Rs 795.40 in afternoon trade after opening at Rs 714.50 apiece. The latter level was also intra-day low while the intra-high was Rs 815 apiece.
At 1.39 PM, the shares were down 11.35 percent at Rs 776.00 on the NSE.
The benchmark Sensex dropped over 331 points to Rs 59,845.16 points in the afternoon trade.
On Tuesday, the company informed stock exchanges that it has approved the allotment of 6,61,53,846 equity shares for an amount aggregating to Rs 4,300 crore pursuant to the FPO.
The company had fixed the FPO issue price at Rs 650 per share.
Following the issuance, the company's paid-up equity share capital stands increased from Rs 59,16,82,014 to Rs 72,39,89,706, according to regulatory filings.
The issue was open from March 24 to 28.
However, in a rare move, Sebi, on March 28, had asked bankers of Baba Ramdev-led Patanjali group's Ruchi Soya to give an option to investors in its FPO to withdraw their bids while also cautioning them about the ''circulation of unsolicited SMS'' about the share sale.
The FPO closed on March 28, and the withdrawal window was open for two days till March 30, as per the Sebi directive.
Nearly 97 lakh bids were withdrawn by FPO investors after markets watchdog Sebi directed Ruchi Soya to give investors the option to withdraw their bids, sources had said on March 31.