Tech Mahindra in top IT m-cap league

Tech Mahindra has become the fifth largest among Indian IT firms in terms of market capitalisation.

The company edged out HCL Technologies to grab the fifth spot with a market cap of Rs 19,599 crore. HCL Technologies is now ranked at number six with a market cap of Rs 19,134 crore.

The company is ahead of seven Sensex stocks - ACC (Rs 19,180 crore), Cipla (Rs 18,986 crore), Gujarat Ambuja Cement (Rs 18,986 crore), Reliance Energy (Rs 15,667 crore), Ranbaxy Laboratories (Rs 15,536 crore), Hero Honda Motors (Rs 14,581 crore) and Dr Reddy's Laboratories (Rs 13,404 crore) in market cap ranking.

Tech Mahindra has achieved this feat in just five months of its listing on the BSE and the NSE on August 28, 2006.

The company went public in August 2006 with a public offer of 12.7 million shares at a price of Rs 365 per share. The stock was listed at Rs 552.79 and zoomed to Rs 1,687.15 thereafter "" a 350 per cent jump over its issue price and a 200 per cent jump after its listing. Tech Mahindra currently stands at number 34 in overall m-cap ranking. When listed, it stood at 80.

Tech Mahindra stocks today gained 2.2 per cent compared with 1.7 per cent decline in the market price of HCL Technologies.

The stock moved up by Rs 36.05 from Rs 1,651.15 to

Rs 1,687.20. On the other hand, HCL Technologies declined by Rs 10 to close at Rs 589.45.

The trigger for the Tech Mahindra spurt came from the recent five-year deal with British Telecom (BT) that is expected to bring in $1 million in revenue.

The market price of the company appreciated 36 per cent since the company signed this deal. The stock moved from Rs 1,243.80 on December, 20 to Rs 1,687.20 today on the BSE.