Mumbai :The Reserve Bank has allowed foreign institutional investors to buy up to 49 per cent stake in V-Mart Retail.
“Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 49 per cent of the paid-up capital of V-Mart Retail Limited under the Portfolio Investment Scheme (PIS),” RBI said in a statement.
The central bank said the foreign shareholding by FIIs/RFPIs in V-Mart Retail have gone below the revised threshold limit.
“Hence, the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect,” it added. As of quarter ended September 2015, FIIs held 23.09 per cent in V-Mart, according to BSE data.
The company has passed resolutions at its Board of Directors’ level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs/RFPIs, RBI said. V-Mart shares rose 3.65 per cent to close at Rs 488.50 apiece on BSE today.