Why TCS turning $100-billion company is significant
Tata Consultancy Services Ltd (TCS) has entered the ranks of 100 largest companies of the world surpassing the Goldman Sachs Group. Today's performance at the stock exchanges made the TCS as the most valuable tech company of India as the first corporation to touch $100 billion mark in a decade.
Ten years ago, the Reliance Industries, the largest conglomerate of India, had become the first company from the country to breach $100 billion mark. However, reports suggest that when Mukesh Ambani's firm crossed $100 billion, the rupee was about 30 per cent stronger than today.
The $100 billion market-cap forms an elite club of top corporates of the world. Besides TCS, there are only 63 other companies with a market-cap of over $100 billion.
Now, TCS' market-cap is equal to the gross domestic product (GDP) of 128 countries of the world. Only about 65 countries of the world have their GDP value in excess of the market-cap of TCS.
Interestingly, TCS' market-cap is about 25 per cent more than the capital invested in the Pakistan Stock Exchange. With new market-cap, TCS is now worth one-third of the total Budget expenditure of India - as proposed in Budget 2018-19.
India and Japan are among the top five countries in terms of spending on defence. Their combined defence budget, according to the International Institute for Strategic Studies, is about $98 billion. This means the market-cap for TCS is bigger than the defence budgets of India and Japan put together.
The IT major, which took the software prowess of India to the world stage, was listed on August 25, 2004. In terms of rupee, the market capitalisation of TCS rose from Rs 47,232 crore to Rs 6.78 lakh crore in 14 years. This is the highest rise among all Indian listed companies.
To put things in perspective, if an investor had invested Rs 10,000 in TCS on August 25 in 2004 -- the day of its listing at the stock exchange, the shares would now be valued at Rs 1.40 lakh.