Tech Mahindra shares rose nearly 2 per cent after the Reserve Bank of India (RBI) allowed the IT firm to raise the purchasing limit of shares by foreign institutional investors (FIIs) in the company by up to 35 per cent of the paid up capital.
"... 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 per cent of the paid up capital of the company under Portfolio Investment Scheme," RBI had said in a notification on Monday.
After making a bullish opening, shares of the company jumped 4.23 per cent to Rs 1,433 - its 52-week high - before paring most of the gains to close 1.81 per cent higher at Rs 1,399.70 on the Bombay Stock Exchange.
On the National Stock Exchange, the stock jumped 4.27 per cent intra-day, to touch a one-year high of Rs 1,433.90, before settling at Rs 1,398.90 - up 1.73 per cent. In terms of volume, 2.15 lakh shares of the company changed hands on BSE while over 15 lakh shares were traded at NSE.
FIIs, NRIs and Persons PIOs are allowed to invest in the primary and secondary capital markets in India through the portfolio investment scheme (PIS).
According to the data available with BSE, as of quarter ended June 30, 2013, FIIs held 26.79 per cent stake in the company.
Meanwhile, the BSE Sensex tanked 651.47 points to close at 18,234.66.
With inputs from PTI