Grasim Industries gets RBI nod to hike foreign investment limit to 49%
Before the RBI nod, Aditya Birla Group firm Grasim Industries could raise foreign shareholding upto 30%
New Delhi: The Reserve Bank has allowed Aditya Birla Group firm Grasim Industries to raise foreign shareholding to 49% from the existing limit of 30%.
The RBI has notified that foreign Institutional Investors/ foreign portfolio investors can now invest from 30% to 49% of the paid up capital of Grasim Industries Limited under the portfolio investment scheme (PIS), the company said in a BSE filing on Friday.
Grasim Industries has passed necessary resolution at the board of directors’ level and also a special resolution by its general body to increase FIIs/FPIs’ investment limit to 49%, it added.
FIIs, NRIs and PIOs (persons of Indian origin) can invest in primary and secondary capital markets in India through portfolio investment scheme (PIS).
The RBI monitors ceilings on FII/NRI/PIO investments in Indian companies on a daily basis. It has fixed the cut-off points two percentage points lower than the actual ceiling.