FII Allowed to Raise Stake in Deccan Gold Mines

Mumbai: Investors lapped up shares of Deccan Gold Mines after the Reserve Bank of India (RBI) allowed Foreign Institutional Investors (FII) to increase stake in the company.

The RBI notified recently that the foreign shareholding by Non-Resident Indians (NRIs)/Persons of Indian Origins (PIOs) in Deccan Gold Mines has gone below the revised threshold caution limit and therefore the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect. The RBI further notified that the NRIs/PIOs can now invest up to 24 percent of the paid up capital of the company under the Portfolio Investment Scheme.

Deccan Gold Mines Limited (DGML) is the first private sector gold exploration company in India to be listed on the Mumbai Stock Exchange. Established as a gold exploration company in 2003, DGML now has a large portfolio of exploration prospects in the states of Karnataka, Andhra Pradesh, Kerala and Rajasthan. The company has actively undertaken Reconnaissance exploration work in all of its exploration prospects in the last three years and has been successful in identifying probable gold resources.