V-Mart Retail shares rise 20% on RBI's nod to up FII limit to 49%

The shares of V-Mart Retail rose as much as 20% intraday on BSE after the Reserve Bank of India (RBI) on Wednesday allowed Foreign Institutional Investors (FIIs) to buy up to 49% stake in the company.

"Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 49% of the paid-up capital of V-Mart Retail Limited under the Portfolio Investment Scheme (PIS)," RBI said in a statement.

On Thursday, at 1221 hours, the company's shares came down from the day's high, and were trading at Rs 570, up Rs 81.50 or 16.68% higher from previous day's close. 

The stock of the company opened at Rs 518.80 per scrip from the previous close of Rs 488.50 on BSE. The day's high and low stood at Rs 586.20 and Rs 518.80, respectively.

The central bank said the foreign shareholding by FIIs/RFPIs in V-Mart Retail has gone below the revised threshold limit.

"Hence, the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect," it added.

As of quarter-ended September 2015, FIIs held 23.09% in V-Mart, according to BSE data.

The company has passed resolutions at the Board of Directors' level and a special resolution by the shareholders has been passed, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs/RFPIs, RBI said.