Jubilant FoodWorks rallies over 3% as RBI hikes FII investment limit

NEW DELHI: Jubilant FoodWorks Ltd rallied as much as 3.4 per cent in trade on Wednesday, after the Reserve Bank of India (RBI) hiked Foreign institutional investors (FIIs) limit to 55 per cent.

FIIs would be able to purchase up to 55 per cent of the paid-up capital in Jubilant FoodWorks, which operates Domino's Pizza brand in the country. The limit has been enhanced from earlier 49 per cent that FIIs could acquire under the portfolio investment scheme (PIS) from primary market.

At 09:35 a.m.; Jubilant FoodWorks pared some of the morning gains but was trading 1.1 per cent higher at Rs 1045. It hit a low of Rs 1037.80 and a high of Rs 1065 in trade today on the BSE.

"Jubilant FoodWorks Limited has passed resolutions at the board of directors' level and a special resolution by the shareholders, agreeing for enhancing the limit from 49 per cent to 55 per cent for the purchase of its equity shares and convertible debentures by Foreign Institutional Investors (FIIs)," RBI said in a notification.

With the enhancement in the limit of foreign buying, the RBI further said that the restrictions placed on the purchase of shares in the company are withdrawn with immediate effect.

Earlier in January, FIIs were restricted to purchase shares in Jubilant FoodWorks as the allowed buying by FIIs had reached trigger limit.