Container Corp Hits 52-Week High as RBI Raises FII Limit

Shares of state run freight operator Container Corporation of India traded at new 52-week high of Rs 1650 after the Reserve Bank of India raised the limit of investment by the foreign institutional investors (FII).

 

The Reserve Bank of India allowed raised the limit of investment for foreign institutional investors to 34 per cent of the paid up capital of the company. 

 

RBI in a notification said, "Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 34 per cent of the paid up capital of Container Corporation of India Ltd under the Portfolio Investment Scheme (PIS)." 

 

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

 

Reacting to the news, the shares of Container Corporation surged as much as 11 per cent. The stock finally closed at Rs 1604, up 8 per cent on the BSE.