The Reserve Bank of India (RBI) has hiked registered foreign portfolios investors (RFPIs) and foreign institutional investors (FIIs) and qualified foreign investors (QFIs) limit to invest up to 12% of the paid up capital of Pipavav Defence and Offshore Engineering under the Portfolio Investment Scheme (PIS).
Simultaneously, the RBI also hiked NRIs, Persons of Indian origin (PIO) limit to invest up to 2% in the company.
The RBI said, "The company has passed resolutions at its board of directors and shareholders' level for allocating the sub limits for the purchase of its equity shares by RFPI, FII, QFIs, NRI and PIOs."
"The purchases could be made through primary market and stock exchanges. The RBI has notified this under FEMA 1999," it added.
Earlier, FIIs and RFPIs held 4.79% of the paid-up capital i.e 35.25 million shares. According to the new investment limit, FIIs and RFPIs can now hold a maximum of 88.34 million shares representing 12% of the paid-up capital.
Shares of the company gained Rs 3.05, or 5.09%, to settle at Rs 62.95. The total volume of shares traded was 994,532 at the BSE (Tuesday).