Capital First rose 1.68% to Rs 821.85 at 12:00 IST on BSE after the Reserve Bank of India notified increase in the foreign investment limit from 24% to 50% in the company.
The Reserve Bank of India made the announcement after market hours yesterday, 12 September 2017. The stock had gained 4.67% to Rs 808.30 yesterday, 12 September 2017.Meanwhile, the S&P BSE Sensex was up 94.76 points, or 0.29% at 32,253.42. The S&P BSE Mid-Cap index was up 47.58 points, or 0.3% at 16,084.67.
More than usual volumes were witnessed on the counter. On the BSE, 1.5 lakh shares were traded on the counter so far as against the average daily volumes of 58,902 shares in the past one quarter. The stock had hit a high of Rs 839 in intraday trade, which is also a 52-week high for the stock. The stock had hit a low of Rs 814.50 so far during the day. The stock had hit a 52-week low of Rs 465.10 on 22 November 2016.
The stock had outperformed the market over the past one month till 12 September 2017, gaining 14.5% compared with the Sensex's 3.03% gains. The stock had also outperformed the market over the past one quarter, rising 17.18% as against the Sensex's 3.42% rise. The scrip had also outperformed the market over the past one year, gaining 21.3% as against the Sensex's 13.42% rise.
The mid-cap company has equity capital of Rs 97.78 crore. Face value per share is Rs 10.
The Reserve Bank of India notified that the foreign investment limit for investment by foreign institutional investors (FIIs)/ foreign portfolios investors (FPIs) in Capital First has increased from 24% to 50% of its paid up capital.
Capital First has passed necessary resolutions of its board of directors and general body as required under the FEMA 1999 and the regulations framed thereunder for the increase in investment limit.
Further, owing to the increase in the above investment limit, it is notified that the aggregate shareholding by FIIs/FPIs in Capital First has gone below the prescribed FIIs/FPIs investment limit for the company. Hence, the restrictions placed on the purchase of shares of the above company by FIIs/FPIs, was withdrawn with immediate effect.
On a consolidated basis, Capital First's net profit rose 36.2% to Rs 66.96 crore on 32% rise in total income to Rs 820.45 crore in Q1 June 2017 over Q1 June 2016.
Capital First is a financial institution focused on providing debt financing to micro small and medium enterprises (MSME) and Indian consumers.
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