Eicher Motor shares rise as RBI allows FIIs to invest up to 49% in firm

Shares of Eicher Motors gained 3 per cent on Thursday after the Reserve Bank of India allowed foreign institutional investors (FIIs) to invest up to 49 per cent of the paid-up capital in the company.

Following this, shares of the motorcycle and truck maker opened the day on a positive note and further gained 3 per cent to Rs 16,350 apiece on the Bombay Stock Exchange (BSE)as the trade progressed.

On the National Stock Exchange (NSE), the scrip climbed up by 2.31 per cent to Rs 16,240 per scrip.

Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 49 per cent of the paid-up capital of Eicher Motors under the Portfolio Investment Scheme (PIS), RBI had said in a statement on Wednesday.

"... the company has passed resolutions at its Board 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," it had said.

The purchases can be made through primary market and stock exchanges, Eicher Motors added.

According to data available on the BSE, FIIs held 19.47 per cent stake in the company as of the quarter ended December 2014.