Road project developer IRB Infrastructure Developers received approval from the Reserve Bank of India (RBI)
to receive up to 49 per cent of its paid up capital as investment from Foreign Institutional Investors (FIIs).
This would allow FIIs to raise their investment in the company's equity shares and convertible debentures under Portfolio Investment Scheme.
The RBI also allowed Radico Khaitan to enhance FII investment limit under the Portfolio Investment Scheme up to 30 per cent of its paid up capital.
Since 49 per cent for IRB Infrastructure Developers and 30 per cent for Radico Khaitan are intermediate ceilings fixed for the FIIs, the RBI will not be monitoring the same and it will be the company’s responsibility to ensure that the applicable cap is not breached, RBI said in a statement.
The RBI said the approval is given subject to the condition that compliance with FDI policy and FEMA regulations including downstream investment would continue to remain on IRB Infrastructure Developers and Radico Khaitan.