IDFC jumps after RBI removes FII stock purchase curbs

IDFC jumped 4.88% to Rs 96.75 at 9:56 IST on BSE after the central bank withdrew restrictions placed on the purchase of the company's shares by foreign investors.

The Reserve Bank of India (RBI) made the announcement after market hours on Wednesday, 11 September 2013.

Meanwhile, the BSE Sensex was up down 90.72 points, or 0.45%, to 19,906.73.

On BSE, 11.86 lakh shares were traded in the counter compared with average volume of 13.92 lakh shares in the past one quarter.

The stock hit a high of Rs 98.90 and a low of Rs 96.30 so far during the day. The stock hit a 52-week low of Rs 76.25 on 28 August 2013. The stock hit a 52-week high of Rs 185.35 on 7 January 2013.

The stock had underperformed the market over the past one month till 11 September 2013, sliding 13.87% compared with the Sensex's 6.43% rise. The scrip had also underperformed the market in past one quarter, sliding 34.11% as against Sensex's 4.46% decline.

The large-cap company has an equity capital of Rs 1515.33 crore. Face value per share is Rs 10.

The Reserve Bank of India (RBI) on Wednesday, 11 September 2013, lifted restrictions placed on foreign institutional investors (FIIs) buying shares in IDFC as the overall foreign shareholding fell below the prescribed limit of 54%.

Foreign shareholding in IDFC under the portfolio investment scheme have gone below the prescribed threshold limit stipulated under the extant FDI Policy, the RBI said in a statement.

Hence, the restrictions placed on the purchase of shares of IDFC are withdrawn with immediate effect, the central bank said.

Total foreign holding in IDFC was 53.18% as at 30 June 2013, of which 52.89% was held by FIIs.

IDFC's consolidated net profit surged 46.7% to Rs 557.31 crore on 24.8% growth in total income to Rs 2298.57 crore in Q1 June 2013 over Q1 June 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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