Shares of V-Mart Retail soared by nearly 20% on Thursday as the Reserve Bank allowed foreign institutional investors to buy up to 49% stake in the company.

The stock settled at Rs 584.20, up 19.59% on BSE. Intra-day, the stock zoomed 20% to Rs 586.20. At NSE, shares of the company jumped 19.87% to settle at Rs 586.30.

“Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 49% of the paid-up capital of V-Mart Retail Limited under the Portfolio Investment Scheme (PIS)”, RBI said in a statement yesterday.

The central bank said the foreign shareholding by FIIs/RFPIs in V-Mart Retail has gone below the revised threshold limit.

“Hence, the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect”, it added.

As of quarter ended September 2015, FIIs held 23.09% in V-Mart, according to BSE data.