IDFC Ltd brings down foreign investment limit to 48 per cent

MUMBAI: Infrastructure financing company IDFC Ltd has further pared its foreign investment limit to 48 per cent to meet requirements for the banking operations after having granted a licence by RBI earlier this year.

IDFC has agreed to decrease the limit for purchase of its equity shares and convertible debentures by Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs), to 48 per cent of the paid up capital, RBI said in a notification.

Earlier limit for such investments in IDFC was 50 per cent.

"Further, the Reserve Bank advised that IDFC Limited will remain included in the bank list for FIIs/RFPIs," it said.

The company has been gradually paring the foreign shareholding limit to meet the pre-requisite of bringing it down to run banking services.

Shares of the company today closed 2.38 per cent down at Rs 137.25 per scrip on the BSE.