D B Corp gains after increase in foreign investment ceiling

D B Corp rose 3.3% to Rs 355.40 at 12:57 IST on BSE after the Reserve Bank of India notified increase in foreign investment ceiling in the company to 26% of the paid-up capital, from 20%.

Meanwhile, the S&P BSE Sensex was up 153.77 points or 0.58% at 26,520.45.

On BSE, so far 81,000 shares were traded in the counter as against average daily volume of 13,009 shares in the past one quarter. The stock hit a high of Rs 376 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 338 so far during the day. The stock had hit a 52-week low of Rs 286.55 on 21 January 2016.

The mid-cap company has equity capital of Rs 183.76 crore. Face value per share is Rs 10.

The Reserve Bank of India (RBI) yesterday, 26 May 2016, notified that foreign institutional investors (FIIs)/registered foreign portfolios investors (RFPIs) can now invest from 20% to 26% of the paid up capital of D B Corp under the Portfolio Investment Scheme (PIS). The total foreign investment in the company from all sources i.e. Foreign Institutional Investors (FII)/Registered Foreign Portfolios Investors (RFPI)/Non-Resident Indians (NRI)/Foreign Direct Investment (FDI)/Persons of Indian Origin (PIO)/American Depository Receipts (ADR)/Global Depository Receipts (GDR) shall not exceed 26% of the paid up capital of the company, the central bank said.

The Reserve Bank further said that the foreign share holding by FII/RFPI/ NRI/FDI/PIO/ADR/GDR in D B Corp have gone below the revised threshold limit stipulated under the extant FDI Policy. Hence, the restrictions placed on the purchase of shares of the company are withdrawn with immediate effect. The Reserve Bank has stated that the company has passed resolutions at its Board of Directors' level, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures. The purchases could be made through primary market and stock exchanges, RBI said.

FII's held 18.48% stake in D B Corp as per the shareholding pattern as on 31 March 2016.

D B Corp's consolidated net profit rose 0.4% to Rs 64.24 crore on 6% growth in net sales to Rs 505.95 crore in Q4 March 2016 over Q4 March 2015.

D B Corp is one of leading print media companies in India.

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