Tech Mahindra gains after RBI hikes FII limit

Tech Mahindra rose 2.22% to Rs 1,583 at 9:20 IST on BSE after the central bank enhanced the limit for foreign institutional investors to purchase shares in the company up to 45% of the paid up capital of the company.

Meanwhile, the BSE Sensex was up 29.40 points, or 0.14%, to 20,557.99.

On BSE, 12,000 shares were traded in the counter compared with average volume of 1.76 lakh shares in the past one quarter.

The stock hit a high of Rs 1,585.40 and a low of Rs 1,563 so far during the day. The stock hit a 52-week high of Rs 1,562.40 on 11 October 2013. The stock hit a 52-week low of Rs 865.25 on 7 December 2012.

The stock had outperformed the market over the past one month till 11 October 2013, rising 16.27% compared with the Sensex's 2.66% rise. The scrip had also outperformed the market in past one quarter, rising 45.16% as against Sensex's 4.33% rise.

The large-cap company has an equity capital of Rs 232.42 crore. Face value per share is Rs 10.

The Reserve Bank of India (RBI) enhanced the limit for foreign institutional investors (FIIs) to invest up to 45% of the paid-up capital of Tech Mahindra. This limit has been revised from the earlier limit of 35% of the paid-up capital of the company under the Portfolio Investment Scheme (PIS). FIIs, at the end of September 2013, controlled 32.59% stake in the company, while promoters holding stood at 36.46%.

Tech Mahindra's consolidated net profit rose 8% to Rs 686.30 crore on 9% growth in sales from services to Rs 4103.20 crore in Q1 June 2013 over Q4 March 2013.

Tech Mahindra is a leading provider of solutions and services to the telecommunications industry, majority stake owned by Mahindra & Mahindra. The company serves telecom service providers, equipment manufacturers, software vendors and systems integrators.

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