Godrej Consumer Gains on Hike in Foreign Investment Limit

Shares of Godrej Consumer Products jumped as much as 4.2 per cent at its intraday high of Rs 1,360 after the Reserve Bank of India increased the foreign investment limit in the FMCG major to 40 per cent from 35 per cent.

The Reserve Bank of India on Friday notified that Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 40 per cent (revised from earlier 35 per cent) of the paid up capital of Godrej Consumer Products Limited under the Portfolio Investment Scheme (PIS).

Analysts say that the move is positive for Godrej Consumer Products as it can now attract higher investment from the foreign institutional investors.

The shares in Godrej Consumer Products ended 2.26 per cent higher at Rs 1,335.

Trading volumes on the BSE jumped as 6,600 shares changed hands compared to average of 1,200 shares traded daily in the past two weeks.