Shares of agrichemicals firm UPL ( formerly known as United Phosphorous Limited) rose by over 6 per cent on Tuesday after the RBI allowed foreign investors to hold up to 74 per cent paid up capital in the company.
UPL's stock surged 3.76 per cent to Rs 347.60 on the Bombay Stock Exchange (BSE).
On the NSE, the scrip rose by 6.27 per cent to Rs 355.90.
The Reserve Bank of India on Monday allowed foreign investors to hold up to 74 per cent paid up capital in UPL under Portfolio Investment Scheme (PIS) as the prescribed limit has gone below threshold.
"advised that FIIs/RFPIs can now invest up to 74 per cent of the paid up capital of UPL Limited under the Portfolio Investment Scheme," RBI had said in a notification.
The foreign shareholding by Foreign Institutional Investors (FIIs) or Registered Foreign Portfolios Investors (RFPIs) in the company had gone below the revised threshold limit.
The decision to enhance the limit for foreign investment came after the board of the company passed special resolution, agreeing to raise the limit for purchase of its equity shares and convertible debentures by FIIs/RFPIs.
"Hence, the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect," RBI had said.
Copyright©2021 Living Media India Limited. For reprint rights: Syndications Today