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CMC jumps after board hikes FII investment limit

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Capital Market
Last Updated : Mar 06 2014 | 11:59 PM IST

CMC rose 3.75% to Rs 1,549 at 15:22 IST on BSE after the company said its board decided to enhance the limit of shareholding of foreign institutional investors to 35% of the paid up share capital of the company.

The company made the announcement during trading hours today, 6 March 2014.

Meanwhile, the BSE Sensex was up 235.47 points, or 1.11%, to 21,512.33.

On BSE, so far 37,000 shares were traded in the counter, compared with an average volume of 18,544 shares in the past one quarter.

The stock hit a high of Rs 1,569 and a low of Rs 1,512 so far during the day. The stock hit a record high of Rs 1,780 on 7 January 2014. The stock hit a 52-week low of Rs 1,106.80 on 5 August 2013.

The stock had outperformed the market over the past one month till 5 March 2014, rising 5.73% compared with the Sensex's 5.01% rise. The scrip had also outperformed the market in past one quarter, rising 8.94% as against Sensex's 1.52% rise.

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The mid-cap company has an equity capital of Rs 30.30 crore. Face value per share is Rs 10.

The board of CMC at its meeting held today, 6 March 2014, has decided, subject to shareholders' approval, to enhance the limit of foreign institutional investors (FIIs) shareholding from 24% to 35% of the paid up share capital of the company.

CMC is a subsidiary of IT major Tata Consultancy Services (TCS). Shares of TCS were down 0.34% at Rs 2,242.50.

On a consolidated basis, CMC's net profit rose 4.79% to Rs 70.54 crore on 0.03% rise in net sales to Rs 560.93 crore in Q3 December 2013 over Q2 September 2013.

CMC is a pioneer Information Technology solutions provider in India and is a subsidiary of TCS. Operating out of 18 offices and 180 service locations in the country, CMC employs over 10,000 people and has a wholly-owned subsidiary in USA called CMC Americas, Inc.

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First Published: Mar 06 2014 | 3:25 PM IST

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