Tech Mahindra hits six-year high as RBI hikes FIIs investment limit

The stock was up 2.3% at Rs 1,586,also its highest level since May 2007 on National Stock Exchange.

Tech Mahindra is trading higher by 2.3% at Rs 1,586, also its highest level since May 2007 on NSE, after the Reserve Bank of India (RBI) enhanced the limit for foreign institutional investors to invest up to 45% of the paid-up capital of the company.

"The Reserve Bank of India notified that Tech Mahindra has passed resolutions at the Board of Directors' level and a special resolution by the shareholders, agreeing of enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs, through primary market and stock exchanges up to 45%," RBI said in a notification on Friday after market hours.

This limit has been revised from earlier limit of 35% of the paid up capital of the company under Portfolio Investment Scheme. FIIs, NRIs and persons of India origin (PIOs) are allowed to invest in the primary and secondary capital markets in India through the PIS.

FII, at the end of September, controls 32.59% stake in the company while promoters holding stands at 36.46%.

The stock opened at Rs 1,560 and has seen a combined around 160,000 shares change hands on the in early morning deals on NSE and BSE.