Shares of Jubilant FoodWorks today fell by over 3 per cent after the Reserve Bank said foreign institutional investors (FIIs) are not allowed any longer to purchase shares in the company as foreign shareholding in it has reached the trigger limit.
Jubilant Food's scrip ended at Rs 1,230.50, down 3.01 per cent on the BSE. During the day, the stock tanked 3.79 per cent to Rs 1,220.60.
At the NSE, the scrip ended 3.45 per cent lower at Rs 1,225.
"...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 yesterday.
FIIs, NRIs and PIOs are allowed to invest in the primary and secondary capital markets in India through the portfolio investment scheme (PIS).
