RBI allows Hinduja Foundries to raise FII limit to 60%

MUMBAI: The Reserve Bank has allowed Hinduja Foundries to raise its foreign investment limit up to 60 per cent of paid-up capital.

" Hinduja Foundries Limited has passed resolutions ... agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by Foreign Institutional Investors ( FIIs), through primary market and stock exchanges up to 60 per cent of the paid up capital," RBI said in a release.

The enhancement in FII investment limit is under the Portfolio Investment Scheme ( PIS).

RBI monitors the ceilings on investments by FIIs, non-resident Indians and persons of Indian origin on a daily basis.

The central bank has set a cut-off level that is 2 percentage points lower than the actual ceiling. After the net equity investment in a company reaches the cut-off level, additional share purchases require the RBI's approval.

Hinduja Foundries is a group company of London head-quartered multi-billion dollar Hinduja Group.

As per the BSE data, FIIs held 6.34 per cent stake as of December 31, 2013, in the company.