Shares of Tech Mahindra rose over 4 per cent today after the Reserve Bank of India allowed the IT firm to raise the purchasing limit of shares by foreign institutional investors in the company by up to 35 per cent of the paid-up capital.
After making a bullish opening, the scrip further jumped 4.23 per cent to Rs 1,433 — its 52-week high on the BSE. Similarly on the NSE, the stock jumped 4.27 per cent to touch a one-year high of Rs 1,433.90.
“... Tech Mahindra has passed resolutions at the board of directors’ level and a special resolution by the shareholders, agreeing to enhance the limit for the purchase of its equity shares and convertible debentures by FIIs through primary market and stock exchanges up to 35 per cent of the paid-up capital of the company under Portfolio Investment Scheme,” RBI had said in a notification yesterday.
FIIs, NRIs and PIOs are allowed to invest in the primary and secondary capital markets in India through the portfolio investment scheme (PIS).
As of June quarter 2013, FIIs held 26.79 per cent stake in the company, as per data available with the BSE.