Tech Mahindra rises on RBI nod to raise FII limit

RBI allowed to raise the purchasing limit of shares by FII in the company by up to 35% of the paid up capital.

Tech Mahindra has moved higher by nearly 4% to Rs 1,425 after the Reserve Bank of India (RBI) allowed to raise the purchasing limit of shares by foreign institutional investors (FII) in the company by up to 35% of the paid up capital.

The RBI on Monday notified that Tech Mahindra has passed resolutions at the board of directors' level and a special resolution by the shareholders, agreeing to enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs, through primary market and stock exchanges up to 35% of the paid up capital of the company under Portfolio Investment Scheme, the Central bank said in a press release.

As of June quarter 2013, FIIs had holding of 26.79% in the company, as per data available on the BSE.

The stock opened at Rs 1,393 and touched a low of Rs 1,385 on BSE. A combined 694,555 shares change hands on the counter so far on BSE and NSE.