RBI okays foreign investors to up stake in Natco Pharma to 49 per cent

MUMBAI: Reserve Bank has allowed foreign investors to increase their investment in Natco Pharma to 49 per cent from existing 31.50 per cent.

Foreign Institutional Investors (FIIs)/Foreign Portfolios Investors (FPIs) can now invest from 31.50 per cent to 49 per cent of the paid up capital of Natco Pharma Limited under the Portfolio Investment Scheme, the RBI said in a notification.

The RBI said Natco Pharma passed resolutions at its Board of Directors' level and a special resolution by general body to raise FII/FPI investment limit from 31.50 per cent to 49 per cent.

FIIs, NRIs and PIOs (Persons of Indian Origins) can invest in primary and secondary capital markets in India through PIS.

The RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis and has fixed the cut-off points two percentage points lower than the actual ceiling.

Stock of Natco Pharma closed 3.02 per cent up at Rs 934.15 on BSE.