FIIs allowed to buy up to 55 pct in Jubilant FoodWorks

Written by PTI | Mumbai | Updated: Apr 16 2014, 03:32am hrs
Foreign institutional investors (FIIs) would be able to purchase up to 55 per cent of the paid-up capital in Jubilant FoodWorks, which operates Dominos 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.

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of foreign buying, the RBI further said that the restrictions placed on the purchase of shares in the company are withdrawn with immediate effect.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

FIIs, NRIs and PIOs are allowed to invest in the primary and secondary capital markets in India through the portfolio investment scheme (PIS).

Under the scheme, FIIs/NRIs can acquire shares/debentures of Indian companies through the stock exchanges.

RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis.

For effective monitoring of foreign investment ceiling limits, the RBI has fixed cut-off points that are two percentage points lower than the actual ceilings.

Jubilant FoodWorks and its subsidiary operates Dominos Pizza brand with the exclusive rights for India, Nepal, Bangladesh and Sri Lanka.

Shares of the company traded 1.03 per cent lower at Rs 1,029.55 apiece on the BSE at the close of market.