Kotak Mahindra Bank Gains as FIPB Raises Foreign Investment Limit

Sharemasterindia.com: Kotak Mahindra Bank shares surged over 2 per cent in an otherwise weak market to hit intraday high of Rs 1,463 after the Foreign Investment Promotion Board (FIPB) raised foreign investment limit in the stock to 55 per cent from 49 per cent earlier.

The stock was outperforming the benchmark Nifty which was down 0.7 per cent.

The FIPB raised investment limit by the foreign institutional investors and foreign portfolio investors to 55 per cent of its market capitalisation from 49 per cent earlier.

Investments from FIIs and FPIs reached its limit of 48.55 per cent after Kotak Mahindra Bank acquired ING's operations.

Earlier, Kotak Bank's proposal to raise the FII limit was rejected twice by the FIPB.

Reacting to this development, Kotak Mahindra Bank's shares advanced. At 9:54 a.m.: the shares in Kotak Mahindra Bank were up 1.5 per cent at Rs 1,449.

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