The Foreign Investment Promotion Board (FIPB) yesterday gave its nod to the proposal of Edelweiss Tokio Life Insurance Co Ltd to increase foreign equity from 26 per cent to 49 per cent of its paid-up capital.
Taking cue of the development, the company's scrip today surged 4.62 per cent to touch Rs 56.60 on BSE, after closing at Rs 54.10 yesterday.
The stock was trading at Rs 55.60, up 2.77 per cent at 12.22 p.m. on BSE.
This is the second FDI proposal to come to the insurance space after the government passed a new law allowing 49 per cent foreign holding in the sector. The first FDI proposal was that of Bharti Axa.
Edelweiss Tokio Life Insurance is a joint venture between Edelweiss Financial Services and Japan's Tokio Marine Holdings, which is a global leader with over 135 years of experience in the business.
The Japanese company currently owns 26 per cent stake in the JV.