Axis Bank rises after govt nod for hiking FII limit
Dec 26 2013 , Mumbai
The bank's stock ended the day at Rs 1,298.2, up 1.21 per cent on the BSE. In intra-day trade, the scrip gained 2.79 per cent to Rs 1,318.45.
At the NSE, the stock settled 1.33 per cent higher at Rs 1,300.
"The Cabinet Committee on Economic Affairs (CCEA) has approved the proposal of Axis Bank for increase in foreign investment from 49 per cent to 62 per cent.
"(This is) subject to the aggregate foreign institutional investors holding not exceeding 49 per cent of the paid up equity share capital of the bank," an official statement said.
The approval would result in foreign investment of about Rs 7,250 crore in the country, it said.
As per the FDI policy, downstream investment by an Indian company, "which is not owned and/or controlled by a resident entity/ies into another Indian company would be in accordance or compliance with the relevant sectoral conditions on entry route".
As of June this year, foreign institutional investment (FII) holding in the bank was at 40.7 per cent, while global depository receipts (GDRs) totalled 8.08 per cent.