Investors who were outbid for shares in the initial public offering of Indian IT services company, Tata Consultancy Services Ltd, piled into the stock on its first day’s trading on the Bombay Stock Exchange yesterday.
Shares in the Mumbai-based company closed 16% higher than the IPO price of INR 850 ($18.34), at INR 987.50 ($21.31), though at one point they traded at INR1080 ($23.31), a 27% premium.
The share price hike indicated that the company may have under priced its IPO, which was oversubscribed 7.7 times.
TCS has over 30,000 employees with clients including American Express, BT Group and Nokia, and is India’s largest exporter of software and services. It has stated that it aims to be in the global top ten by 2010.