Mumbai: Shares of Apollo Tyres climbed six per cent today as foreign investors have been allowed by the RBI to buy up to 45 per cent of the paid-up equity capital in the company.
Apollo Tyres' scrip gained 5.88 per cent to Rs. 208.60 on the BSE. At the NSE, it surged six per cent to Rs. 208.70.
"Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs), through primary market and stock exchanges, can now purchase up to 45 per cent of the paid-up capital of Apollo Tyres Limited under the Portfolio Investment Scheme (PIS)," RBI had said in a notification on October 1.
The tyre manufacturer had passed resolutions at the board level and a special resolution agreeing to enhance the limit from 40 per cent to 45 per cent for purchase of its equity shares and convertible debentures by FIIs/RFPIs.
Foreign Institutional Investors (FIIs), Registered Foreign Portfolios Investors (RFPIs), NRIs and PIOs (Persons of Indian Origins) can invest in primary and secondary capital markets in India through PIS.