Axis Bank rises after govt nod for hiking FII limit
Mumbai: Shares of Axis Bank on Thursday rose by over one percent after the government approved increase in foreign investment limit in the company to 62 percent.
The bank's stock ended the day at Rs 1,298.2, up 1.21 percent on the BSE. In intra-day trade, the scrip gained 2.79 percent to Rs 1,318.45.
At the NSE, the stock settled 1.33 percent higher at Rs 1,300.
"The Cabinet Committee on Economic Affairs (CCEA) has approved the proposal of Axis Bank for increase in foreign investment from 49 percent to 62 percent.
"(This is) subject to the aggregate foreign institutional investors holding not exceeding 49 percent of the paid up equity share capital of the bank," an official statement said.
The approval would result in foreign investment of about Rs 7,250 crore in the country, it said.
As per the FDI policy, downstream investment by an Indian company, "which is not owned and/or controlled by a resident entity/ies into another Indian company would be in accordance or compliance with the relevant sectoral conditions on entry route".
As of June this year, foreign institutional investment (FII) holding in the bank was at 40.7 percent, while global depository receipts (GDRs) totalled 8.08 percent.