Shares of V-Mart Retail gained as much as 20 per cent on Thursday after the Reserve Bank of India in a release said foreign investors can now buy up to 49 per cent stake in the company.
At 1.04 pm, the share price of V-Mart was trading 17.58 per cent up at Rs 574.40 on BSE. Later, the share price ended 19.59 per cent up at Rs 584.20
As on September 2015, promoters, FIIs, DII and others held 57.71 per cent, 23.09 per cent, 6.99 per cent and 12.21 per cent stake in V-Mart Retail.
In a notification, the central bank said, “The foreign shareholding by FIIs/RFPIs in V-Mart Retail have gone below the revised threshold limit. Hence, the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect.”
In the past one year, the share price of V-Mart fell 7.67 per cent to Rs 488.50 on December 23. Benchmark index Sensex declined 6.02 per cent during the same period.