Hathway Cable & Datacom shares gained as much as 16 per cent in the morning trade on Thursday after the Reserve Bank of India (RBI) announced removal of restrictions placed on purchase of shares of the company by Foreign Institutional Investors (FIIs) and Registered Foreign Portfolios Investors (RFPI) with immediate effect.
The investments can go up to 74% (revised from earlier limit of 49% stipulated under Foreign Direct Investment policy) of the company’s paid up capital through GDR/ADR/FDI under the Portfolio Investment Scheme (PIS) in primary market and stock exchanges.
At 11.34 am, shares of Hathway Cable & Datacom were trading 8.91 per cent higher at Rs 44.
The scrip closed 8.42 per cent higher at Rs 43.80.
According to the BSE data, at present, FIIs hold 14.54 per cent stake in the company. On BSE, so far 10,10,000 shares were exchanged hands as against average daily volume of 28,000 shares in the past two weeks.
RBI regularly prevents FIIs from buying shares in companies if they approach the limit stipulated by regulations and then re-adjusts once foreign ownership falls below the prescribed level.
(With inputs from Reuters)