 "Den Networks rallies as RBI raises FIIs' equity limit in firm to 74%")
Den Networks has rallied 7% to Rs 124 on the BSE in an otherwise weak market after the Reserve Bank of India (RBI) has allowed foreign investors to raise their stake up to 74% in the company.
"Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 74% of the paid up capital of DEN Networks Limited under the Portfolio Investment Scheme (PIS)," the RBI said in a notification dated October 26.
The central bank said the decision came after the company passed resolutions at its board of directors level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs/RFPIs.
"Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 74% of the paid up capital of DEN Networks Limited under the Portfolio Investment Scheme (PIS)," the RBI said in a notification dated October 26.
The central bank said the decision came after the company passed resolutions at its board of directors level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs/RFPIs.
As of September 30, 2015, FIIs held 22.79% stake in Den Networks, the shareholding pattern data shows.
The stock hit a high of Rs 125 on the BSE and has seen over ten-fold jump in trading volumes. Till 09:42 pm, a combined 311,744 shares changed hands on the counter on the BSE and NSE.