IDFC shares slump over on decrease in FII holding limit

Shares of IDFC on Tuesday extended Monday's losses and plummeted by over 12 per cent as the company's ceiling limit of its overall foreign shareholding has been reduced to 54 per cent from 74 per cent earlier.

Shares of IDFC plunged 12.37 per cent to Rs 83.20 - its 52-week low on the Bombay Stock Exchange. On the National Stock Exchange, the scrip nosedived 12.55 per cent to hit a one-year low of Rs 82.85.

In a filing to BSE, IDFC had on Monday said: "This has reference to RBI press release dated August 23, 2013, on decrease in foreign investment limit/ceiling in an Indian company under PIS addressed to all the custodian banks. IDFC Ltd has informed that the ceiling limit in respect of all the FIIs, FDI, NRIs, OCBs and foreign nationals have now been reduced from 74 per cent to 54 per cent."

It informed further that the current foreign shareholding in IDFC Ltd is 53.71 per cent.

"Hence, the company has advised all the custodian banks vide its e-mail dated August 26, 2013, to not make any further purchases through secondary markets on behalf of their FII & NRI clients with immediate effect," it had added.

Market value of the company shrunk by Rs 1,766 crore to Rs 12,622 crore.

With inputs from PTI