Jubilant FoodWorks slips 4% as FII holding hits trigger limit

NEW DELHI: Jubilant FoodWorks Ltd plunged as much as 3.7 per cent in morning trade on Thursday, after the Reserve Bank on Wednesday said foreign institutional investors ( FIIs) are not allowed any longer to purchase shares in the company as the foreign shareholding in the company has reached the trigger limit.

At 09:36 a.m.; Jubilant FoodWorks recouped some of the losses and was trading 2.8 per cent lower at Rs 1235.50. It has hit a low of Rs 1220.60 and a high of Rs 1256 in trade today.

"...the aggregate net purchases of equity shares in Jubilant FoodWorks Limited by Foreign Institutional Investors (FIIs) in primary/secondary markets under Portfolio Investment Scheme (PIS) have reached the trigger limit.

Hence, further purchases of equity shares of this company would be allowed only after obtaining prior approval of the RBI," the central bank said in a notification on Wednesday.

Under the scheme, FIIs/NRIs can acquire shares/debentures of Indian companies through the stock exchanges, PTI reports. RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis.