Shares of Tech Mahindra Ltd on Tuesday rose by over 4 per cent after the Reserve Bank 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,shares of the company further jumped 4.23 per cent to Rs 1,433 — its 52-week high on BSE.
On 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 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 yesterday.
Foreign Institutional Investors (FIIs),NRIs and Persons 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.