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|April 30, 1998||
The big boom
The IT industry rides high on a pro-software wave and a stock market that makes millionaires of geeks.
Finally, the software industry is coming to its own on the stock markets too, and those who stuck with it are being rewarded for hanging on there.
The net worth of firms like Wipro, Satyam Computers, Infosys and NIIT have risen sharply, sometimes more than 100 per cent, while that of other,
A good indicator of the fortunes of the IT firms lies in the market capitalisation. For example, when Wipro's stood at Rs 65.5 billion, the figure exceeded the combined strength of the Wadia group (Rs 16.29 billion),.the B K Birla group (Rs 13.86 billion), and the RGP group (Rs 9.55 billion).
By comparison, Infosys, another IT firm, was valued at a very healthy Rs 32.42 billion, and Satyam Computers, at Rs 11.6 billion. This despite a fall in the stocks of software products at the time.
Infosys, Satyam, NIIT and Wipro shares have risen 95, 153, 81 and 186 per cent respectively since February 2 to April 23.
So Azim Premji, who owns about five per cent of Wipro's stocks, has shares worth Rs three billlion. But companies he owns earn another 70 per cent of Wipro's stocks.
Infosys chief Narayan Murthy and co-promoters hold 43 per cent of the company stock. Meaning they hold shares worth 13.63 billion.
The collective 67 per cent shares of NIIT's Vijay Thadani, Shiv Nadar and Rajendra Pawar are have jumped in value from Rs 11.94 billion to Rs 21.72 billion in two months. Similarly, Satyam's promoters, B Rama Raju and B Ramalinga Raju who with their associates own 38 per cent of the company have seen their net worth rise from Rs 1.74 billion to Rs 4.4 billion.
The rise is seen partly as a result of the pro-IT attitude of the government and the potential software the companies have shown in the international market.
-Compiled from the Indian media
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