Ruchi Soya Industries’ share price slumped 19% in opening trade on April 6, a day after the board approved the allotment of 6.61 crore shares to raise Rs 4,300 crore, after the previous follow-on public offer (FPO), whose subscription dropped as the regulator permitted withdrawals in response to “unsolicited SMSes advertising the issue.”

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“Following the allotment in the issue, the paid-up share capital will increase from Rs 59,16,82,014 to Rs 72,39,89,706,” the firm said in a release.

Ruchi Soya Industries was trading at Rs 809.85 on the BSE at 10:45 am, down Rs 65.60, or 7.49%.

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Notably, the FPO came under fire when the Securities and Exchange Board of India (SEBI) discovered the “circulation of unsolicited SMSes advertising the issue.”

While the business has distanced itself from the messages, the market regulator has ordered it to run newspaper adverts warning investors against similar SMSes.

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SEBI also gave investors a three-day window from March 28-30 to withdraw their applications.

According to BSE records, 14,583 applications totalling 9.74 million shares were withdrawn as of March 30.

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Qualified institutional bidders withdrew 7.86 million offers, while high net-worth investors recalled 1.31 million and 5.70 lakh shares were withdrawn by retail investors.

The aggregate subscription was reduced to 3.39 times from 3.6 times on March 28 as a result of this withdrawal.

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The Patanjali-backed Ruchi Soya published a public notification on March 29 stating that they have filed a first information report to identify the people responsible for the unsolicited SMSes.