| The Economic Times
11 October 2016
Increase in cap from current 24 per cent to 30 per cent will be effective post approval from RBI
Mumbai: Aditya Birla Group company Grasim Industries on Monday said its shareholders had approved raising foreign investment limit in the company to 30 per cent.
The increase in the investment limit for Registered Foreign Portfolio Investors (RFPIs)/ Foreign Institutional Investors (FIIs) from the currently approved 24 per cent to 30 per cent of the company's equity share capital and sub-division of shares will be effective post approval from the Reserve Bank, the company said in a statement.
The enhanced limit will create headroom for RFPIs/FIIs allowing them to make further investments in the company's equity shares, a company statement said here.
The headroom is likely to further increase post merger of Aditya Birla Nuvo Limited (ABNL) with Grasim, considering the level of RFPIs/FIIs holding in BNL at 12.1 per cent as of June 2016.
Requisite regulatory approvals for the merger are in process. Grasim's equity shares have also been sub-divided from one equity share of face value of Rs. 10 each fully paid up to five equity shares of face value of Rs. 2 each fully paid up, effective from October 6.
These measures are aimed at increasing liquidity in the company’s equity shares, the company said.