The Reserve Bank on Wednesday said it has removed Hathway Cable & Datacom from its caution list and foreign investors can now buy more shares in the company. (Photo: Reuters image for representation only)
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. It opened at Rs 45 and touched a high and low of Rs 46.90 and Rs 43.70, respectively. The BSE Sensex was up 300 points at 25,999.58.
On the NSE, the scrip was trading 9.23 per cent higher at Rs 43.80. The NSE Nifty was up 1.20 per cent at 7,885.20.
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)
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