Airtel up over 2% as RBI allows higher FII limit

Telecom major's scrip gained 2.32% to Rs 345.20 on the BSE

Shares of Bharti Airtel today rose by over 2% after the Reserve Bank increased limit for overseas investors to buy shares in the company.

After a positive opening, the telecom major's scrip further gained 2.32% to Rs 345.20 on the BSE.

On the NSE, the stock was up 2.44% to Rs 345.20.

"The RBI has advised that foreign institutional investors (FIIs)/registered foreign portfolios investors can now invest up to 74% of the paid up capital of Bharti Airtel Ltd under the portfolio investment scheme," the central bank had said yesterday in a release.

The RBI said Airtel's board of directors and shareholders have passed resolutions agreeing to increase the limit on the purchase of its equity shares and convertible debentures by FIIs.

The purchases can be made through the primary market and through the stock exchanges.

The government last year allowed up to 100% foreign shareholding in the telecom sector, increasing it from a cap of 74% earlier.

FIIs held 16.39% of Bharti Airtel's shares as of March 31, according to data on the BSE website.