TCS plans overseas listing after a year

By SiliconIndia   |   Thursday, 26 August 2004, 07:00 Hrs
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MUMBAI: TCS would go for overseas listing after a year. Disclosing this on the occasion of the listing of TCS Initial Public Offer (IPO) at the National Stock Exchange (NSE) the company CEO, S Ramadorai said that TCS is also open to a merger with other software companies of the Tata group.

Ramadorai further said that the merger with other software companies of Tata group would be announced in due course of time after discussions with the investors. The company intends to grow, both organically and inorganically. According to him, while the company is expanding its reach in the US, China, Eastern Europe and Asia-Pacific, the listing of TCS shares would act as a currency for its overseas growth plans.

Talking about the overseas listing Ramadorai said that, "As per the SEBI regulations, we are not supposed to go for an overseas listing for at least a year from the date of domestic listing. But we are definitely looking at the possibility after that."

The TCS issue hit the stock exchanges today with issue opening at Rs 1198.70, a 41 percent premium on NSE and at Rs 1,050, at a premium of 23.5 percent on the BSE. The Re 1 equity shares were priced at Rs 850 per share.

TCS shares saw a block deal of more than eight lakh shares on the NSE at a price of Rs 1052.30 immediately after listing. The stock is the top traded counter on the NSE. The company also began trading in the F&O segment simultaneously.

According to analysts, at a listing price of Rs 1050, TCS is now to be ranked third according to market cap, at Rs 47,827 crore, preceded by ONGC at Rs 100,471 crore and Reliance at Rs 63,332 crore. Competitors Infosys and Wipro are ranked lower, with market caps of Rs 41,616 crore and Rs 40,300 crore respectively.

Experts are advising shareholders to hold on to the TCS stock, as it will yield both medium and long-term gains. According to them, investors might think of switching from Wipro to TCS and Infosys. In the long term TCS stock is believed to holds a lot of good potential for the investor.

At the close of its first day of trading TCS stocks were rallying at Rs 987.95 on NSE and Rs 987.50 on BSE.

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