Mumbai: Shares of SITI Cable Network surged to a 52-week high level in morning trade on the bourses after the Reserve Bank of India (RBI) allowed foreign investors to buy up to 49 per cent in the company.
Foreign institutional investors (FIIs)/registered foreign portfolio investors (RFPIs) can now invest up to 49 per cent of the paid-up capital of SITI Cable Network under the Portfolio Investment Scheme (PIS), RBI said in a statement on Monday.
Following the announcement, the shares of the company opened on a strong note at Rs 39.70, then jumped 13.31 per cent to touch an early high of Rs 41.70, which is also its 52-week high level.
On NSE, the shares of the company opened at Rs 40, then gained further ground and touched a high of Rs 41.70, up 13 per cent from its previous closing price.
Marketmen said the spike in the counter was largely due to the hike in foreign investor buying limit.
The company has passed resolutions at its Board of Directors level and a special resolution through shareholders, agreeing to raising the limit for the purchase of its equity shares by FIIs/RFPIs, it added.
As of the September quarter, FIIs held 13.88 per cent in the company, according to the BSE data.
SITI Cable shares ended 5 per cent higher at Rs 38.75 as compared to a 0.17 per cent fall in Sensex.