Maruti Suzuki gains as RBI allows RFPIs to buy up to 40% stake

Maruti Suzuki India rose 1.64% to Rs 4,390.90 at 09:21 IST on BSE after the Reserve Bank of India notified that registered foreign portfolios investors can now invest up to 40% of the paid up capital of the company.

Meanwhile, the S&P BSE Sensex was up 7.30 points or 0.03% at 25,864

On BSE, so far 7,456 shares were traded in the counter as against average daily volume of 39,273 shares in the past one quarter.

The stock hit high of Rs 4,415.70 and low of Rs 4,370 so far during the day. The stock had hit a record high of Rs 4,689.20 on 20 August 2015. The stock had hit a 52-week low of Rs 2,903.25 on 17 October 2014.

The large-cap car manufacturing company has equity capital of Rs 151.04 crore. Face value per share is Rs 5.

The Reserve Bank of India (RBI) after market hours yesterday, 14 September 2015 notified that foreign institutional investors (FIIs)/registered foreign portfolios investors (RFPIs)/qualified foreign investors (QFIs) can now invest up to 40% of the paid up capital of Maruti Suzuki India under the Portfolio Investment Scheme (PIS). RBI further advised that the foreign shareholding by FIIs/RFPIs in Maruti Suzuki India have gone below the revised threshold limit. Hence, the restrictions placed on the purchase of the company's shares are withdrawn with immediate effect.

Maruti Suzuki India's net profit rose 56.5% to Rs 1192.92 crore on 18.1% growth in net sales to Rs 13078.32 crore in Q1 June 2015 over Q1 June 2014.

Japanese parent Suzuki Motor Corporation holds 56.21% stake in Maruti Suzuki India (as per the shareholding pattern as on 30 June 2015).

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