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TCS hits $100 bn market cap: Decoding the journey to the top

The initial public offer (IPO) opened on July 29, 2004 and closed on August 5, 2004. 55,452,600 equity shares of Rs 1 each were put on sale during the IPO. In addition, the green shoe option offered 83 lakh shares.

Aseem Thapliyal | April 24, 2018 | Updated 11:21 IST
TCS hits $100 bn market cap: Decoding the journey to the top

TCS has come a long way since the stock was listed at a 27% premium to its issue price of Rs 850 on August 25, 2004. The stock has given 318% returns to the investors since its listing date fourteen years ago. In the last 10 years, however, the stock has delivered over 600% returns to its shareholders. We look at various key levels the stock scaled to hit a record Rs 6.80 lakh crore mark in market action today.

The initial public offer (IPO) opened on July 29, 2004 and closed on August 5, 2004. 55,452,600 equity shares of Rs 1 each (face value) were put on sale during the IPO. In addition, the green shoe option offered 83 lakh shares. A greenshoe option allows the underwriter the right to sell or purchase more shares than originally planned during the first 30 days' time window immediately after listing. 

Under this, the underwriter buys or sell equity shares from the market if share price falls the below issue price or goes significantly above the issue price. The above option acts as a price stabilising mechanism.

The price band of the share was Rs 775 -Rs 900 per share. The Rs 5,420-crore IPO was oversubscribed 10.3 times and over 13 lakh bids were received for the issue.

On listing, the market capitalisation of stock stood at Rs 47,232 crore. Since then, the stock has gained over Rs 6,79,332 crore in market cap- the highest among all Indian listed companies.

2003

TCS was the first Indian infotech company to clock a turnover of over $1 billion. The firm recorded revenues of Rs 5,012 crore ($1.04 billion) for 2002-03

2005

In 2005, the firm's market capitalisation crossed $10 billion mark. It became the first Indian firm in the IT space to cross $2 billion in revenue and half a billion dollar in net profit as per US GAAP in 2004-2005.

2010

During five years, the market capitalisation of the firm rose nearly 2.5 times. In July, the market capitalisation of the firm rose to $25 billion.
 
2013

In July 2013, the market capitalisation of the firm rose to $50 billion.

2014

The company added $25-billion in market value to reach $75 billion in an year.

2018

On April 20, 2018, TCS came close to the $100 billion-mark after company reported better-than-anticipated earnings.

And today, the stock hit its all-time high of 3,557 level on BSE becoming the first Indian firm to enter the $100 billion market capitalisation club.  The phenomenal rise of the stock can be attributed to weak rupee and robust Q4 earnings.

The firm's market capitalisation in rupee terms zoomed to Rs 6.80 lakh crore. Currently, TCS is followed by Reliance Industries, HDFC Bank, ITC, HUL and HDFC in terms of market capitalisation on BSE.

The stock is the top gainer on Sensex and Nifty in trade today.

TCS shares have risen 26 percent so far this year, compared with Infosys that has gained 13 percent.

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