Maruti Suzuki scrip flares up on permission to FIIs

Car maker Maruti Suzuki India Ltd's scrip flared up on the bourses on Tuesday in the wake of Reserve Bank of India (RBI) permitting foreign investors to invest up to 40 percent of its equity.

Maruti Suzuki's scrip opened at Rs.4,370 at BSE and touched an intra-day high of Rs.4,415.70 before changing hands at around Rs.4,330.

The central bank on Monday notified that foreign institutional investors (FII)/registered foreign portfolios investors (RFPIs)/qualified foreign investors (QFIs) can now invest up to 40 percent of the paid up capital of Maruti Suzuki under the Portfolio Investment Scheme (PIS).

The RBI said the shareholding by FII/RFPI in Maruti Suzuki have gone below the revised threshold limit.

"Hence, the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect," it said.

The RBI stated that the company has passed resolutions at its board of directors' level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs/RFPIs.

The purchases could be made through primary market and stock exchanges and would be subject to FEMA regulations.

According to Maruti Suzuki, 607 FIIs hold 65,693,000 shares accounting for 21.75 percent of its equity capital.