Foreign investors will be able to up their stake in Birla group's Grasim Industries by 6 percentage points to 30 per cent following RBI's approval for the higher limit.
Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest from up to 30 per cent of the paid up capital of Grasim Industries Limited under the Portfolio Investment Scheme (PIS), the Reserve Bank said in a notification.
Grasim had passed a resolution at the Board level, besides a special resolution by the shareholders, agreeing to enhance the limit from 24 per cent to 30 per cent for the purchase of its equity shares by FIIs/RFPIs.
FIIs, NRIs and PIOs (Persons of Indian Origins) can invest in primary and secondary capital markets in India through PIS.
RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis and has fixed the cut-off points two percentage points lower than the actual ceiling.
Grasim Industries shares closed 1.11 per cent down at Rs 899.75 on BSE.
Disclaimer: No Business Standard Journalist was involved in creation of this content
