Axis Bank share price rallied as much as 2.69 per cent intra day on Wednesday and hit their highest level of Rs 529.50 since August 21, 2015 after the Reserve Bank of India allowed the private lender to raise foreign shareholding to up to 62 per cent, from the earlier limit of 49 per cent.
At 12.19 pm, shares of Axis Bank were trading 0.72 per cent up at Rs 519.30. The scrip opened at Rs 525 and has touched a high and low of Rs 529.50 and Rs 518.40, respectively, in trade so far. The benchmark BSE Sensex was trading 104 points up at 26,772.
“Foreign institutional investors (FIIs)/registered foreign portfolios investors (RFPIs) can now invest from the existing 49 per cent up to 62 per cent of the paid-up capital of Axis Bank under the Portfolio Investment Scheme (PIS)”, RBI said in a notification.
RBI said total foreign investment from all sources in the bank shall not exceed 62 per cent of the paid-up capital.
In the past one year, shares of Axis Bank slid 12 per cent to Rs 515.60 till May 31, 2016, whereas BSE Sensex declined 4.17 per cent during the same period.