RBI allows Tech Mahindra to raise FIIs shareholding to 48 pc
PTI March 14, 2014
Reserve Bank(RBI) has allowed software firm Tech Mahindra to increase the foreign investment limit by up to 48 per cent from 45 per cent earlier.
"...Foreign Institutional Investors (FIIs), through primary market and stock exchanges, can now purchase up to 48 percent (revised from earlier limit of 45 per cent) of the paid up capital of Tech Mahindra under Portfolio Investment Scheme (PIS)," RBI said in notification on Thursday.
The RBI directive follows passage of a resolution by the board of directors of the company to enhance the limit from 45 per cent to 48 per cent for purchase of its equity shares and convertible debentures by FIIs.
FIIs, NRIs and PIOs (Persons of Indian Origins) can invest in primary and secondary capital markets in India through Portfolio Investment Scheme (PIS).
The RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis.
To effectively monitor the limit, RBI has fixed cut-off points two percentage points lower than the actual ceiling.
FIIs held 40.42 per cent shares in Tech Mahindra, as of quarter ended December 31, 2014, according to data from BSE.
Shares of the firm on Thursday closed at Rs 1,780.60 apiece on the BSE, down 1.20 per cent from the previous close.