IDFC slipped nearly 1% as it brings down FII limit to 48%

NEW DELHI: IDFC Ltd slipped as much as 0.9 per cent in trade on Wednesday after the infrastructure financing company 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.

At 09:45 a.m.; IDFC was trading 0.5 per cent lower at Rs 136.55. It hit a low of Rs 136 and a high of Rs 138.50 in trade today.

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, PTI reported.

"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, said the PTI report.