Good news for foreign investors: RBI gives nod to raise stake up to 36% in CERA

Reserve Bank has permitted foreign investors to increase their stake in Cera Sanitaryware to up to 36% under the portfolio investment scheme (PIS).

"Foreign Institutional Investors (FIIs)/ Foreign Portfolios Investors (FPIs) can now invest from 24% to 36% of the paid-up capital of Cera Sanitaryware Limited under the PIS," the RBI said in a notification on Friday.

Cera Sanitaryware has passed necessary resolutions at the board level and a special resolution by its general body agreeing for enhancing the limit from 24% to 36%, the RBI said.

The company which is involved in business of furniture, furnishing and paints had promoter group shareholding at 54.75% as on end of the December quarter.

While, the rest of 45.25% came under public holding, showed the BSE data.

FIIs, 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 and has fixed the cut-off points two percentage points lower than the actual ceiling.

Stock of the company closed 2.83% higher at Rs 2,312 on BSE on Friday.