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Petronet LNG gains after RBI notifies increase in foreign investment ceiling

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Capital Market
Last Updated : Nov 04 2015 | 12:17 PM IST

Petronet LNG rose 2.66% to Rs 206.65 at 11:59 IST on BSE after the Reserve Bank of India yesterday, 3 November 2015, notified that foreign investors can now invest up to 30% of the paid-up capital of the company.

Meanwhile, the S&P BSE Sensex was up 115.50 points or 0.43% at 26,706.09.

On BSE, so far 1.03 lakh shares were traded in the counter as against average daily volume of 88,777 shares in the past one quarter.

The stock hit a high of Rs 208 and a low of Rs 202.50 so far during the day. The stock had hit a record high of Rs 221.90 on 8 January 2015. The stock had hit a 52-week low of Rs 159.80 on 27 April 2015.

The stock had outperformed the market over the past one month till 3 November 2015, surging 14.6% compared with Sensex's 1.41% rise. The scrip had also outperformed the market in past one quarter, gaining 4.44% as against Sensex's 5.66% fall.

The large-cap company has equity capital of Rs 750 crore. Face value per share is Rs 10.

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The Reserve Bank of India (RBI) yesterday, 3 November 2015, notified that Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 30% of the paid up capital of Petronet LNG under the Portfolio Investment Scheme (PIS). The RBI further said that the foreign shareholding by FIIs/RFPIs in Petronet LNG has gone below the revised threshold limit. Hence, the restrictions placed on the purchase of shares of the company are withdrawn with immediate effect.

The Reserve Bank has stated that the company has 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. The purchases could be made through primary market and stock exchanges, the RBI said.

FIIs held 22.45% stake in Petronet LNG as per the shareholding pattern as on 30 September 2015.

Petronet LNG's net profit fell 5.3% to Rs 248.85 crore on 33.2% decline in net sales to Rs 7250.47 crore in Q2 September 2015 over Q2 September 2014.

Petronet LNG was formed as a joint venture by the Government of India to import liquified natural gas (LNG) and set up LNG terminals in the country.

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First Published: Nov 04 2015 | 12:02 PM IST

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