(Reuters) - Shares of Australian crop protection firm Nufarm Ltd <NUF.AX> fell 8 percent on Monday as trading resumed following a A$303 million ($219 million) capital raising after it reported an annual loss.
On Tuesday, Nufarm posted a yearly loss of A$15.6 million as a severe drought cut domestic sales, prompting it to slow down production, write down its business and raise fresh capital.
The company's shares, which last traded on Sept. 24, fell 8.2 percent to A$6.05 a share, a more than 2-1/2 year low.
Nufarm said in an announcement it had raised about A$238 million at an offer price of A$5.85 a share in an institutional entitlement offer. It expected to raise A$65 million in the retail entitlement offer later this month.
Nufarm's woes augur badly for other firms exposed to Australia's rural sector, which is struggling through the driest conditions in decades across the country's east.
($1 = 1.3847 Australian dollars)
(Reporting by Aditya Soni in Bengaluru; editing by Richard Pullin)
