Mumbai: The Reserve Bank of India (RBI) has barred foreign financial institutions (FIIs) from picking up shares of Industrial Finance Corporation of India Ltd from the primary and secondary markets under the portfolio investment scheme (PIS), as they have hit the exposure ceiling of 22 per cent.
No further purchases of equity shares by FIIs should be made without obtaining the prior permission of the Reserve Bank, the central bank said in a release.
The ailing financial institution had decided to sell some percentage of its stake to a strategic partner as part of its restructuring plans. IFCI, with accumulated losses of about Rs4,300 crore, had also decided to appoint Ernst & Young as advisor to look for a strategic investor.
However, according to RBI, FII investment in IFCI has reached the limit of 22 per cent of its paid up capital, leaving no scope of further investment.
IFCI, meanwhile, said it received sale proceeds for 2,362,500 equity shares (constituting 5 per cent) of NSE from three institutional investors viz. Goldman Sachs, NYSE & General Atlantic through off-market transaction.
IFCI had agreed to sell 3,150,000 equity shares (constituting 7 per cent holding) of the NSE to four institutional investors - Goldman Sachs, NYSE, General Atlantic and Soft Bank.
Further, the company says that sale proceeds of balance 787,500 equity shares constituting 1.75 per cent of paid-up capital of NSE is expected within next one or two days from Soft Bank.
The shares of the company closed at Rs31.75, or Rs0.35, or 1.11 per cent. The total volume of shares traded at the BSE was 8,566,464. (April 4)