Tech Mahindra's IPO price was Rs. 91.25 (after split & bonus) or a market cap of Rs. 8,800 cr. and was subscribed 71 times, in August 2006.
— Onevestor (@Onevestor) April 15, 2016
And it was listed at a 50% premium on NSE, with the opening price at Rs. 130.25 and closing price at Rs. 138.25.
— Onevestor (@Onevestor) April 15, 2016
And in less than 4 months (after IPO), Tech Mahindra signed the largest Indian outsourcing deal (of $1 billion) ever — with British Telecom.
— Onevestor (@Onevestor) April 15, 2016
The stock was already trading at around Rs. 280 then (or 2x the listing price of ~ Rs. 140).
— Onevestor (@Onevestor) April 15, 2016
And the deal pushed the stock to new highs (gaining 20% on day one) and then to Rs. 400 levels or up 50% post the deal announcement.
— Onevestor (@Onevestor) April 15, 2016
The stock eventually hit a new life high of Rs. 500 (in Jan 2007) or a market cap of around Rs. 45,000 cr.
— Onevestor (@Onevestor) April 15, 2016
And the stock later hit a new low of Rs. 50 (or ~ 50% below its 2006 IPO/listing price) in Feb 2009 — thanks to global financial crisis.
— Onevestor (@Onevestor) April 15, 2016
Or, technically the stock corrected 90% from its all-time high and was probably trading with a market cap of around $1 bn (or Rs. 5k cr.).
— Onevestor (@Onevestor) April 15, 2016
It basically means that its market cap was less than the size of a single contract (TechM – BT).
— Onevestor (@Onevestor) April 15, 2016
And later in 2015 (or after 6 years) the stock was trading at around Rs. 750 (or 15x its 2009 low).
— Onevestor (@Onevestor) April 15, 2016
