Ujjivan shares down 5% on RBI move

Mumbai: Shares of Ujjivan Financial Services fell nearly 5 per cent today as the Reserve Bank has put the company on its ban list for foreign investment, which means overseas investors will not be able to buy further equity in the firm.

After a weak opening, shares of the company further lost 4.79 per cent to Rs 372.35 on BSE. At NSE, the stock declined 4.99 per cent to Rs 372.55. The aggregate foreign shareholding through foreign institutional investors, registered foreign portfolio investors, foreign direct investment, non-resident Indians, American Depository Receipts, Global Depository Receipts and persons of Indian origin in Ujjivan Financial Services has crossed the permissible limit, RBI had said yesterday.

“Hence… no further purchase of shares of this company would be allowed through stock exchanges in India on behalf of FII, RFPI, FDI, NRI, ADR, GDR and PIO,” RBI had said in a release.

The Bengaluru-based Ujjivan Financial Services is one of the recipients of the small bank licence granted by RBI last year. It would be the holding company for the proposed Ujjivan Small Bank.

(To download our E-paper please click here. The publishers permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

Free Press Journal