Just Dial shares gain after RBI raises FII limit

Just Dial shares jumped 3.6 per cent in morning trade after the Reserve Bank of India allowed overseas investors to buy up to 75 per cent in the company.

"Foreign institutional investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 75 per cent (revised from earlier limit of 49 per cent) of the paid-up capital of Just Dial Limited under PIS," the central bank had said in a notification on Thursday.

The decision to raise such investment limit came after the company passed resolutions at its board of directors' level and a special resolution by shareholders, agreeing to enhance the limit of its equity shares and convertible debentures by foreign institutional investors (FIIs).

FIIs held 26.64 per cent shares in the company as of September 30, 2014.

Shares of Just Dial pared their opening gains but were still trading 2.49 per cent higher at 11 am on the Bombay Stock Exchange.