Centre to raise infotech firms' foreign takeover investment ceiling to $500m
Domestic information technology companies are likely to be given freedom for direct investment up to $500 million or 25% of their market capitalization, whichever is lower, to fund acquisitions abroad....
"We have in principle acceded to the request which came from the software industry as several software companies have been doing rather well and a formal notification will be issued after the new government takes charge," the sources said.....
The scrip of top software companies touching new heights in recent months has made the sector the star performer on the bourses in recent months. The current market cap of IT sector crossed Rs 1,00,000 crore on Thursday.
Of this, the market cap of top five companies Wipro, Infosys, NIIT, Satyam and Digital Equipment alone is estimated to comprise over Rs 75,000 crore ($16.67 billion). If the market cap of privately-held top IT company Tata Consultancy Services were also to be included, it would be well above Wipro at between Rs 35,000 crore and Rs 40,000 crore, taking the total market cap figure to 1,40,000 crore ($31.11 billion).... (FinancialExpress) |
