Lupin extends gain on Cabinet nod to hike FII limit cap to 49%

The stock up 2% at Rs 1,580, extending its Thursday's 3% rally, on the government nod to raise the cap of FII to 49%.

Lupin is trading higher by 2% at Rs 1,580, extending its Thursday’s 3% rally on BSE, after the government allowed drug maker to raise the cap of foreign institutional investor (FII) holding to 49%.

“The Cabinet Committee on Economic Affair gave its approval to the proposal of the company to increase in aggregate limit of investment by Flls and their sub-accounts registered with SEBI, from 33% to 49%,” Lupin said in a statement.

At its meeting held on June 20, 2013, the board approved to increase the same to 49%. At the 31st Annual General Meeting held on August 07, 2013, the shareholders approved the proposal to increase the said limit. Applications for increasing the said limit were submitted to the Reserve Bank of India (RBI) and Foreign Investment Promotion Board (FIPB), it added.

The stock opened at Rs 1,561 and touched a new high of Rs 1,585 on BSE. A combined 514,696 shares changed hands on the counter till 1340 hours on BSE and NSE.