BackTech Mahindra shares jump as FIIs limit raised
RBI allowed the firm to raise the purchasing limit of shares by FIIs by up to 35% of the paid up capital
Premium(Hemant Mishra/Mint)
Mumbai: Shares of Tech Mahindra Ltd on Tuesday rose by over 4% after the Reserve Bank of India allowed the IT firm to raise the purchasing limit of shares by foreign institutional investors (FIIs) in the company by up to 35% of the paid up capital.
After making a bullish opening, shares of the company further jumped 4.23% to ₹ 1,433—a 52-week high on BSE. On NSE, the stock jumped 4.27% to touch a one-year high of ₹ 1,433.90. The scrip later pared gains to close 1.81% higher at ₹ 1,399.70 apiece on BSE and 1.73% higher at ₹ 1,398.90 apiece on NSE.
“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 (PIS)," RBI had said in a notification on Monday.
FIIs, NRIs and persons of indian origin are allowed to invest in the primary and secondary capital markets in India through the PIS.
As of June quarter 2013, FIIs held 26.79% stake in the company, as per data available with the BSE.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
