IDFC drops amid volatility as RBI bans fresh FII investment

IDFC lost 1% to Rs 94.20 at 15:12 IST on BSE after the Reserve Bank of India after trading hours on Friday, 21 February 2014, said that no further purchases of shares of the company will be allowed on behalf of foreign institutional investors.

Meanwhile, the S&P BSE Sensex was up 91.96 points or 0.44% at 20,792.71.

On BSE, so far 5.86 lakh shares were traded in the counter as against average daily volume of 8.66 lakh shares in the past one quarter.

The stock was volatile. The stock lost as much as 1.31% at the day's low of Rs 93.90 so far during the day. The stock lost 0.31% at the day's high of Rs 94.85 so far during the day. The stock had hit a 52-week high of Rs 165.45 on 17 May 2013. The stock had hit a 52-week low of Rs 76.25 on 28 August 2013.

The stock had underperformed the market over the past one month till 21 February 2014, sliding 5.65% compared with Sensex's 2.59% fall. The scrip had also underperformed the market in past one quarter, declining 7.85% as against Sensex's 2.33% rise.

The large-cap infrastructure financing firm has an equity capital of Rs 1516.22 crore. Face value per share is Rs 10.

The Reserve Bank of India (RBI) on Friday, 21 February 2014, notified that the foreign shareholding by foreign institutional investors (FIIs) in IDFC has crossed the overall limit of its paid-up capital. Therefore, no further purchases of shares of this company would be allowed through stock exchanges in India on behalf of FIIs, RBI said. IDFC has passed resolutions at the board of directors' level and a special resolution by the shareholders, agreeing for decreasing the limit from 54% to 52.5% for FIIs. RBI said that since FIIs had crossed the overall limit to buy stake in IDFC, they will not be allowed to purchase any further number of shares through the Indian stock exchanges. Total shareholding of FIIs in IDFC stood at 51.39% as on 31 December 2013.

IDFC's consolidated net profit rose 10% to Rs 500.68 crore on 3.7% growth in total income to Rs 2122.84 crore in Q3 December 2013 over Q3 December 2012.

IDFC is an integrated infrastructure finance player providing end to end infrastructure financing and project implementation services. The company also offers asset management services through IDFC Mutual Fund.

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