Jain Irrigation falls 3 per cent amid talk of FIIs dumping stock

Shares of Jain Irrigation fell 3% to Rs 63 on Monday amid rumours some long-only funds are selling the stock. Almost 50% of the company’s shares are owned by FIIs.
The company said its securities issuance committee will meet on Tuesday to decide on the $200 million fund raising plan.

Brokers said investors are worried about the company’s prospects over further equity dilution coupled with weak monsoon. They said the stock may remain under pressure in the short-term as it faces the risk of earnings downgrades.