Infosys Says 30% Fii Holding Limit Not Breached

Infosys has refuted a recent RBI report that the company has reached the maximum investment limit of 30 per cent by foreign institutional investors (FII) and non-resident Indians.

The company has clarified that the foreign holding is only 25 per cent of total equity, Infosys vice-president Mohandas Pai told Business Standard.

Interestingly, reports of Infosys having reached the FII investment ceiling had sent the price of the company stock down.

The scrip has fallen from a 52-week high of Rs 1,656 to the current level of Rs 1,241.

Infosys had earlier proposed to make use of the recent government notification for increasing the investment limit of foreign institutional investors and non-resident Indians in Indian companies from 24 per cent to 30 per cent. Subsequently, the board had passed a resolution at the last annual general meeting to increase this limit to 30 per cent.

 

Following the companys decision to increase the investment limit of foreign institutional investors and NRIs at its last AGM, investors interest in buying of its scrip rose steadily in expectation of a hefty price to be offered by buyers from abroad.

However, it reached the plateau on reports that RBI had admitted of Infosys having touched the 30 per cent ceiling. Soon after, the scrip went on a downward spiral to reach the current price of around Rs 1,240.

Clarifying the companys shareholding pattern, the vice-president said while the promoters held 31 per cent equity, foreign institutional investors and non-resident Indians had only 25 per cent; Indian financial institutions hold another 10 per cent; employees hold 10 per cent while public have 24 per cent respectively, he said.