Maruti Suzuki up 2%, RBI allows FIIs to buy stake upto 40%

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Moneycontrol Bureau

Shares of Maruti Suzuki India gained 2.2 percent in early trade Tuesday after the Reserve Bank of India has allowed foreign institutional investors to buy shares of the company.

The Reserve Bank of India on Monday notified that foreign institutional investors/registered foreign portfolios investors/qualified foreign investors can now invest up to 40 percent of the paid up capital of Maruti under the portfolio investment scheme.

Earlier FII investment limit was 24 percent. With this rise in limit, chances of inclusion in MSCI has increased.

The Reserve Bank said restrictions placed on purchase of shares of company are withdrawn with immediate effect as foreign shareholding by FIIs/RFPIs in Maruti have gone below revised threshold limit.

The company has passed resolutions at its board of directors’ level and a special resolution by shareholders, agreeing for enhancing limit for purchase of its equity shares and convertible debentures by FIIs/RFPIs. The purchases could be made through primary market and stock exchanges, said RBI.

FIIs held 21.75 percent in Maruti Suzuki at the end of June quarter, as per data available on exchanges.

At 09:26 hours IST, the scrip of Maruti Suzuki India was quoting at Rs 4,388.05, up Rs 67.90, or 1.57 percent on the BSE.Posted by Sunil Shankar Matkar