Axis Bank, HCL Tech gain post FIPB raises FDI limit

Moneycontrol Bureau

Shares of Axis Bank and HCL Technologies gained more than 2 percent in early trade Friday after Foreign Investment Promotion Board (FIPB) cleared proposals of these companies to increase FII investment limit.

In case of Axis Bank, the board approved proposal to raise foreign shareholding limit to 62 percent from 49 percent earlier.

The bank had sought for increase in FDI limit after foreign investment in the bank reached to 49 percent.

Also Read - FIPB clears Shanta Biotech's proposal; Sanofi to hold 100%

At present, total foreign shareholding in the bank stands at 48.96 percent, including foreign institutional investors' 40.7 percent stake as of June 2013.

Earlier in August, Axis Bank had approached FIPB after RBI had said limit of investments through global depository receipts, american depository receipts, FDI, NRI and FIIs in the bank had breached the threshold limit of 49 percent of its total paid-up capital.

Meanwhile, FIPB also cleared the proposal of HCL Technologies to increase foreign investment limit.

Axis Bank erased early gains; the stock was up just 0.07 percent to Rs 1,141 at 09:53 hours IST on the Bombay Stock Exchange while HCL Technologies rose 2.03 percent to Rs 1,043.90.