Shares of Ruchi Soya tanked nearly 20% in early trade after the board of the Baba Ramdev-led firm cleared the allotment of 6.61 crore equity shares via a Follow on Public Offer (FPO). The firm plans to raise Rs 4,300 crore from the share sale. Ruchi Soya stock opened 19.36% lower at Rs 706 against the previous close of Rs 875.45 on BSE.
Ruchi Soya stock is trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The share has gained 6.57% in one year and fallen 11.02% since the beginning of this year. Total 2.71 lakh shares of the firm changed hands amounting to a turnover of Rs 20.01 crore on BSE.
The stock hit a 52 week high of Rs 1377 on June 9, 2021 and a 52 week low of Rs 619 on April 22, 2021. Market cap of the firm fell to Rs 22,957 crore on BSE.
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On April 5, the board approved the allotment of around 66.1 million shares to raise an amount of Rs 4,300 crore. The approval comes days after the company launched the follow-on public offer (FPO), which was subscribed 3.6 times.
"The issue committee of the board of directors of the company at its meeting held today has approved the allotment of 6,61,53,846 equity shares of face value of Rs 2 each, for an amount aggregating to Rs 4,300 crores, pursuant to the issue," it informed the stock exchanges.
Following the allotment of equity shares in the issue, the paid-up equity share capital of the company "stands increased from Rs 59,16,82,014 to Rs 72,39,89,706", the regulatory filing added.