TeamLease Services surges 17% as RBI raises FPI investment limit

The stock surged 17% to Rs 2,387 in intra-day trade in otherwise weak market after the RBI raised the investment limit for FPIs in the company from 24% to 75%

TeamLease Services surged 17% to Rs 2,387 on the BSE in intra-day trade on Wednesday, in an otherwise weak market after the Reserve Bank of India (RBI) raised the investment limit for foreign portfolio investors (FPIs) in the company to 75% on Tuesday.

Currently, FPIs hold 24.64% stake in TeamLease Services, one of India’s leading human resource service companies in the organized segment.

“The Reserve Bank of India has notified that the Foreign Portfolios Investors (FPIs) investment limit under Portfolio Investment Scheme in TeamLease Services has increased from 24% to 75% of its paid up capital,” the RBI said in a press release.

TeamLease Services has passed necessary resolutions of its board of directors and general body as required under the FEMA, 1999 and the regulations framed there under.

The increase is subject to regulation 5(2) of Foreign Exchange Management (Transfer or issue of security by a person resident outside India) Regulations, 2017 dated November 07, 2017, as amended from time to time, and the onus of compliance with the limits prescribed for the company is on the company, it added.

At 10:42 am; the stock was trading 14% higher at Rs 2,306 on the BSE, as compared to 0.30% decline in the S&P BSE Sensex. A combined 206,101 equity shares changed hands on the counter so far against an average sub 100,000 shares were traded daily in past two weeks on the BSE and NSE.