Reserve Bank has allowed foreign investors to hike their stake in Motherson Sumi Systems to up to 30 per cent from 24 per cent earlier.
The company's Board of Directors had passed a resolution and its shareholders passed a special resolution agreeing for enhancing the limit for the purchase of its equity shares by FIIs/RFPIs.
FIIs, NRIs and PIOs (Persons of Indian Origin) 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.
Meanwhile, shares of the company were trading at Rs 316.90 apiece, up 0.96 per cent from the previous close at 11:06 hours on BSE.