Pantaloon Retail surges as RBI permits FIIs, NRIs to buy shares

A combined 9.15 million shares have already changed hands so far against an average around 3.5 million shares that were traded daily in past two weeks.

Pantaloon Retail (India) has surged 9% to Rs 265 after the Reserve Bank of India (RBI) allowed foreign institutional investors (FIIs), Non Resident Indian (NRIs) and Persons of Indian Origins (PIOs) to buy shares in the company.

“The aggregate share holdings by FIIs, NRIs and PIOs under Portfolio Investment scheme in M/s Pantaloon Retail (India) Limited has gone below the prescribed threshold limit stipulated under extant Foreign Direct Investment Policy. Hence the restrictions placed on the purchase of shares of the above company on behalf of FIIs/NRIs/PIOs, are withdrawn with immediate effect,” RBI said in a notification dated January 21, 2013.

Further, it is advised that in respect of the existing prior approval applications for purchase of shares received through custodian banks of FIIs, pending with RBI which could not be processed due to unavailability of limit/headroom, such investors are free to invest within the enhanced ceiling.

The stock opened at Rs 244 and high of Rs 268 on BSE. As many as a combined 9.15 million shares have already changed hands on the counter in morning trades against an average around 3.5 million shares that were traded daily in past two weeks.