RBI allows FPIs to buy up to 49% in Eveready Industries

The Reserve Bank on Tuesday allowed foreign investors to invest up to 49 per cent stake in Eveready Industries India under the Portfolio Investment Scheme.

Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (FPIs) can now invest up to 49 per cent of the paid up capital of Eveready Industries India under the Portfolio Investment Scheme (PIS), RBI said in a release.

The company had passed resolutions at its board meeting and a special resolution was approved by the shareholders for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs/RFPIs, RBI said.

As per data on BSE, FIIs held 16.29 per cent in the company as of quarter ended June 2015. FIIs, NRIs and PIOs (Persons of Indian Origins) can invest in primary and secondary capital markets in India through PIS. The 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. Shares of the Eveready Industries closed at Rs 280.40 per share on the BSE on Tuesday.