Capital First hits new high

Capital First hit a 52-week high today at Rs.839, the highest level since Jan 2008; after which it now stands at Rs.822, up around 2%.

The stock is up after the RBI notified the company that the foreign investment limit for investment by Foreign Institutional Investors (FIIs)/ Foreign Portfolios Investors (FPIs) in Capital First has increased from 24% to 50% of its paid-up capital.

As at 30th June 2017, promoters held 36% stake while FIIs, strangely, as per BSE data, held more than 24% at 25.69%, which is already more than the permissible limit.

The company provides debt financing to micro, small and medium enterprises (MSMEs) and Indian consumers.