The share price of CMC Ltd got a boost from reports that the Union government is planning to sell its residual stake in the company to the Tatas.
The stock rose 0.49 per cent to end at Rs 522.25 on Bombay Stock Exchange (BSE), and hit an intraday high of Rs 541.50. It clocked volume of 11,114 shares.
The surge in the stock materialises following reports that the Centre has initiated the process of exiting CMC completely by selling its residual 26 per cent stake to the strategic partner, Tata Sons.
Also Read
Last year, on October 16, Tata Sons acquired 51 per cent equity stake (77,26,500 equity shares) in the company. Ananlysts said that the stock was also buoyant on expectations of excellent results for the quarter ended September 30, 2002. They expect the company to post a 63 per cent rise in net profit to Rs 15.6 crore (Rs 11.4 crore) on a 14.7 per cent increase in net sales.
Recently, CMC announced that its wholly owned subsidiary, Baton Rouge International, had bagged a Rs 84-crore contract for outsourcing in partnership with Tata Consultancy Services (TCS). This came in addition to the various contracts bagged by CMC in partnership with TCS, particularly in the area of port and cargo management solutions, ranging between $2 million and $19 million, in the UK, the US, Malaysia and South East Asia.
Earlier, Tata group software companies TCS and CMC jointly won the Adani Ports