SITI Cable shares surge 13% intraday on RBI's nod to raise FII cap

The shares of SITI Cable Network surged 13% 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% in the company.

Foreign Institutional Investors (FIIs)/Registered Foreign Portfolio Investors (RFPIs) can now invest up to 49% of the paid-up capital of SITI Cable Network under the Portfolio Investment Scheme (PIS), RBI said in a statement on Monday.

However, at 1301 hours, the shares of the SITI Cable Network were down from the day's high, but still trading above the red line, up 7.37% or Rs 2.70 higher at Rs 39.50 per scrip on the BSE. 

Following the announcement, the shares of the company on BSE opened on a strong note at Rs 39.70, then jumped 13.31% 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% 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% in the company, according to the BSE data.