Mumbai: Shares of Hero MotoCorp Ltd rose as much as 2.5 percent today after the Reserve Bank allowed foreign investors to buy up to 49 percent of the paid up capital in the company.
Hero MotoCorp's stock jumped 2.47 percent to Rs 3,110 on the BSE. At the NSE, it was up 2.42 percent to Rs 3,108.60.
"... Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 49 per cent of the paid up capital of Hero MotoCorp Ltd. (Earlier Hero Honda Motors Ltd) under the Portfolio Investment Scheme," RBI had said in a notification yesterday.
The decision follows passage of a special resolution 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 percent in the company.
RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis.
