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Ruchi Soya Industries Ltd's stock dropped more than 19 percent on Wednesday after the board approved the allotment of 6.61 crore shares to raise Rs 4,300 crore. This was followed by a recent follow-on public offering (FPO) whose subscription fell after the Securities and Exchange Board of India (Sebi) allowed withdrawals due to "unsolicited SMSes advertising the issue."

At 11 am, shares of Ruchi Soya were trading at Rs 783, down 92.45 points or 10.56 percent on the BSE.

"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 the face value of Rs 2 each, for an amount aggregating to Rs 4,300 crores, pursuant to the issue," the Patanjali-owned company informed the stock exchanges.

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Ruchi Soya FPO: How investors can withdraw applications

"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.

Notably, markets regulator Sebi chastised the FPO for the "distribution of unsolicited SMSes advertising the issue." While the company distanced itself from the messages, the market regulator instructed it to run newspaper ads warning investors about such SMSes on March 28.

Also Read: Ruchi Soya rollercoaster ride: What's Patanjali-owned company up to & why SEBI stepped in

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

According to BSE records, 14,583 applications totalling 9.74 million shares were withdrawn as of March 30.

Ruchi Soya had on March 29 issued a public notice saying they have lodged a first information report to find out the origin and the culprits of unsolicited SMSes.

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(Edited by : Akanksha Upadhyay)