Tree House Educations rallies over 6% as RBI allows 49% FII investment

NEW DELHI: Tree House Education & Accessories Ltd rallied as much as 6.2 per cent in trade on Friday, after the Reserve Bank of India ( RBI) said that foreign institutional investors (FIIs) and registered foreign portfolios investors ( RFPIs) can now invest up to 49 per cent of the paid up capital in the company.

At 09:50 a.m.; Tree House Education pared some of the intraday gains but was still trading 2.4 per cent higher at Rs 450. It hit a low of Rs 446.25 and a high of Rs 463.80 in trade today.

The central bank advised on Thursday that Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 49 per cent of the paid up capital of M/s Tree House Education & Accessories Limited under the Portfolio Investment Scheme (PIS).

"The Reserve Bank has stated that the company has passed resolutions at its Board of Directors' level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs/RFPIs," RBI said in a release.