Axis Bank shares rise 3% on RBI move

RBI allowed raising foreign shareholding in the company

Shares of Axis Bank rose by nearly 3% on Wednesday after the Reserve Bank of India allowed raising foreign shareholding to up to 62% in the company, from the earlier limit of 49%. 

The stock gained 2.69% to Rs 529.50 on BSE.

On NSE, it went up 2.76% to Rs 529.45.

"Foreign institutional investors (FIIs) and registered foreign portfolios investors (RFPIs) can now invest from the existing 49% up to 62% of the paid-up capital of Axis Bank under the Portfolio Investment Scheme (PIS)," RBI had said in a notification on Tuesday.

It further said total foreign investment from all sources in the bank shall not exceed 62% of the paid-up capital.

The decision was taken after passage of resolutions at the level of the board of directors and through a special resolution by the shareholders, agreeing to enhancing the limit for purchase of its shares and convertible debentures by FIIs/RFPIs.