Welspun India Limited has agreed to enhance the limit for purchase of its equity shares and convertible debentures by foreign institutional investors (FIIs) to 49 per cent, the Reserve Bank of India (RBI) said in a notification today.
FIIs can acquire Welspun stock from the primary market as well as the stock exchanges, under the portfolio investment scheme, up to 49 per cent of its total paid-up capital, RBI said.
The board of directors of the company has passed a resolution to this effect and would seek shareholders' nod at the company's annual general meeting.
FIIs can now purchase Welspun stock under the portfolio investment scheme through primary market and stock exchanges.
The total purchases by all FIIs should not exceed the applicable overall ceiling limits of 49 per cent of total paid-up equity capital and total paid-up value of each series of convertible debentures of the company, RBI said.
The purchases of equity shares by a single FII or SEBI-approved sub-account of a registered FII in the company should, however, not exceed 10 per cent of the paid-up equity capital of the company, RBI noted.