Tech Mahindra gains after RBI OKs raising FII limit

Tech Mahindra rose 1.51% to Rs 1,395.60 at 9:50 IST on BSE after the central bank allowed the company to raise the purchasing limit of shares by foreign institutional investors in the company by up to 35% of the paid up capital.

Meanwhile, the BSE Sensex was down 123.74 points, or 0.66%, to 18,762.39

On BSE, 28,000 shares were traded in the counter compared with average volume of 1.18 lakh shares in the past one quarter.

The stock hit a high of Rs 1,409 and a low of Rs 1,385 so far during the day. The stock hit a 52-week high of Rs 1,428 on 30 August 2013. The stock hit a 52-week low of Rs 800.55 on 3 September 2012.

The stock had outperformed the market over the past one month till 2 September 2013, rising 11.50% compared with the Sensex's 1.45% decline. The scrip had also outperformed the market in past one quarter, rising 42.22% as against Sensex's 4.42% fall.

The large-cap company has an equity capital of Rs 232.31 crore. Face value per share is Rs 10.

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 Foreign Institutional Investors (FIIs), through primary market and stock exchanges up to 35 per cent of the paid up capital of the company under Portfolio Investment Scheme, the Reserve Bank of India (RBI) said in a notification.

As of 30 June 2013, FIIs held 26.80% stake in the company.

Tech Mahindra's consolidated net profit rose 7.6% to Rs 686 crore on 8.9% growth in revenue to Rs 4103 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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