Tech Mahindra gains as RBI allows hike in FII investment limit

Tech Mahindra rose 1.43% to Rs 1,806 at 09:22 IST on BSE after the Reserve Bank of India notified that foreign institutional investors can now purchase up to 48% stake in the company from the earlier limit of 45%.

Meanwhile, the S&P BSE Sensex was down 75.21 points or 0.35% at 21,699.40

On BSE, so far 6,467 shares were traded in the counter as against average daily volume of 72,055 shares in the past one quarter.

The stock hit high of Rs 1,809.95 and low of Rs 1,780 so far during the day. The stock hit a 52-week high of Rs 1,936.35 on 6 March 2014. The stock hit a 52-week low of Rs 895.25 on 21 May 2013.

The large-cap IT company has an equity capital of Rs 233.42 crore. Face value per share is Rs 10.

The Reserve Bank of India on Thursday, 13 March 2014 notified that foreign institutional investors (FIIs), through primary market and stock exchanges, can now purchase up to 48% (revised from earlier limit of 45%) of the paid up capital of Tech Mahindra under the Portfolio Investment Scheme (PIS). Tech Mahindra has passed resolutions at the board of directors' level and a special resolution by the shareholders, agreeing for enhancing the limit from 45% to 48% for the purchase of its equity shares and convertible debentures by foreign institutional investors (FIIs). FII holding in Tech Mahindra stood at 40.42% (as per shareholding pattern as on 31 December 2013).

The Reserve Bank has notified this under FEMA 1999, regarding raising of aggregate ceiling for investments by FIIs in Indian companies under Portfolio Investment Scheme (PIS).

Tech Mahindra's consolidated net profit jumped 40.55% to Rs 1009.52 crore on 2.66% growth in net sales to Rs 4898.55 crore in Q3 December 2013 over Q2 September 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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