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Reserve Bank has allowed foreign investors to buy up to 49% of the paid up capital in Hero MotoCorp Ltd.
"...Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 49%t of the paid up capital of Hero MotoCorp Ltd. (Earlier Hero Honda Motors Ltd.) under the Portfolio Investment Scheme," RBI said in a notification.
The decision follows passage of a special resolution at board of directors and shareholders to enhance the limit for the purchase of its equity shares and convertible debentures by FIIs.
As of quarter ended September 2014, FIIs held 34.34% in the company.
RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis.
To effectively monitor the limit, RBI has fixed cut-off points two percentage points lower than the actual ceiling.
Shares of Hero MotoCorp closed 1.68% lower at Rs 3,034.80 per scrip on the BSE today.
