Aug 26, 2004

TCS debut ...Bangalore vs Chennai...Domestic IT market

The country's biggest and (until now) least hyped IT firm Tata Consultancy Services (TCS) finally debuted in the BSE yesterday and looks like it'll have a foriegn listing in about a year. Nasdaq or NYSE?

Already with Rs. 500,000,000,000 (US $ 11 b) it is the biggest Indian IT firm by market cap and third biggest in the BSE after ONGC and Reliance.

The stock rose around 16% on the first day of trading and resulted in quite a few of the other IT firms (Infosys, Wipro, Satyam) whose shares fell due to the TCS effect. Ratan Tata also shared that TCS could look at consolidating with the other Tata group technology companies (Tata Elxsi, Tata Interactive Systems, CMC, VSNL (?))

In other news Gartner tells the IT big boys to concentrate on the increasingly lucrative domestic Indian market. That is where the Tatas have an edge after having taken over CMC.

And while Bangalore and Hyderabad were fighting over IT firms to set up shop there, looks like Chennai has silently set up huge infrastructure and is making this a three way race.