The Reserve Bank today said foreign investors can increase their stake in Parag Milk Foods to 40 per cent from the existing limit of 24 per cent.
The investment limit for Foreign Institutional Investors (FIIs)/Foreign Portfolios Investors (FPIs) in Parag Milk Foods has increased from 24 per cent to 40 per cent of its paid up capital.
Parag Milk Foods has passed necessary resolutions of its Board of Directors and General Body to enhance the foreign investment limit to 40 per cent.
Following this, RBI said it has removed the company from its caution list that monitors the foreign investment limit under portfolio investment scheme (PIS).
RBI said owing to the increase in the investment limit, it is notified that the aggregate shareholding by FIIs/FPIs in Parag Milk Foods has gone below the prescribed FIIs/FPIs investment limit for the company.
"Hence, the restrictions placed on the purchase of shares of the company by FIIs/FPIs are withdrawn with immediate effect," RBI said.
FIIs, NRIs and PIOs (Persons of Indian Origins) can invest in primary and secondary capital markets in India through PIS.
RBI monitors ceilings on FII/NRI/PIO investments in Indian companies on a daily basis. It has fixed the cut-off points two percentage points lower than the actual ceiling.
Stock of the company closed 4.13 per cent up at Rs 256.15 on BSE today.
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