FIIs can buy up to 45% stake in Apollo Tyres: RBI

Foreign investors have been allowed by the RBI to buy up to 45 per cent of the paid-up equity capital in Apollo Tyres .

"Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs), through primary market and stock exchanges, can now purchase up to 45 per cent of the paid-up capital of Apollo Tyres Limited under the Portfolio Investment Scheme (PIS)," RBI said in a notification.

The tyre manufacturer had passed resolutions at the board level and a special resolution agreeing to enhance the limit from 40 per cent to 45 per cent for purchase of its equity shares and convertible debentures by FIIs/RFPIs.

Foreign Institutional Investors (FIIs), Registered Foreign Portfolios Investors (RFPIs), NRIs and PIOs (Persons of Indian Origins) can invest in primary and secondary capital markets in India through PIS.

The RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis.

To effectively monitor the limit, RBI has fixed cut-off points two percentage points lower than the actual ceiling.

The RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis.  To effectively monitor the limit, RBI has fixed cut-off points two percentage points lower than the actual ceiling.

Shares of the company closed 2.98 per cent lower at Rs 197 per scrip on the BSE on Wednesday.