RBI increases foreign investment limit in Titan Company and Shilpa Medicare

The Reserve Bank of India (RBI) has allowed foreign investment increment in Titan Company (TCL) and Shilpa Medicare (SML) on December, 10. The RBI notified that Foreign Institutional Investors (FIIs) or Registered Foreign Portfolios Investors (RFPIs) can now invest up to 35 per cent of the paid up capital of TCL under the Portfolio Investment Scheme (PIS). On the other hand, FIIs and RFPIs can invest up to 30 per cent of the paid up capital of SML under PIS.

TCL and SML have already passed resolutions at the Board of Directors level and special resolutions in order to increase the limit for the purchase of equity shares and convertible debentures by FIIs/RFPIs.

TCL's shareholding pattern indicates  21.07 per cent of FII holdings, 4.2 per cent of DII holdings, 21.68 per cent non-institutional holdings and promoter holdings of 53.05 per cent as of September 2015 quarter. The company's share price increased by 4.22 per cent on bourses in early trades and is trading at Rs 367.45 on intraday basis.

SML's shareholding pattern indicates that 15.06 per cent of FII holdings stood at 0.14 per cent of DII holdings, 31.75 per cent non-institutional holdings and promoter holdings of 53.05 per cent as of September 2015 quarter. The company's share price increased by 6.6 per cent on bourses in early trades and is trading at Rs 476 on intraday basis.

TCL is in the business of manufacturing its own brand watches. The Company's primary segments includes Watch, Jewellery and Others. The Company also offers Tanishq, a jewelry brand to the customers. It operates around 1100 retail stores across an area of approximately 1.5 million square feet. TCL's retail network spans around 220 towns. The company has around 400 World of Titan showrooms and over 150 FastTrack stores. It also has a network of over 740 after sales service centers.

SML is in the business of manufacturing bulk drugs, intermediates and wind power generation. The company develops, produces and markets a portfolio of around 50 generic medicines. It also offers a pipeline of oncology drugs and has a portfolio of around 25 products and a pipeline that addresses the needs of cancer treatment.