CMC rose 2.07% to Rs 1502.20 at 10:11 IST on BSE after the Reserve Bank of India allowed foreign institutional investors to purchase up to 35% of the paid-up capital of the company.
Meanwhile, the BSE Sensex was up 247.19 points, or 1.01%, to 24,621.59.
On BSE, so far 2,650 shares were traded in the counter, compared with an average volume of 8,818 shares in the past one quarter.
The stock hit a high of Rs 1,524.90 and a low of Rs 1,496 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 underperformed the market over the past one month till 22 May 2014, falling 2.45% compared with 7.10% rise in the Sensex. The scrip had also underperformed the market in past one quarter, rising 0.56% as against Sensex's 17.75% rise.
The mid-cap company has an equity capital of Rs 30.30 crore. Face value per share is Rs 10.
On Thursday, 22 May 2014, the Reserve Bank of India (RBI) notified that foreign institutional investors (FIIs), through primary market and stock exchanges, can now purchase up to 35% (revised from earlier 24%) of the paid up capital of CMC under the portfolio investment scheme (PIS).
CMC has passed resolutions at the board of directors' level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs.
RBI further notified that the foreign share holding by FIIs in CMC have gone below the revised threshold limit stipulated under the extant FDI policy. Hence, the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect.
As on 31 March 2014, FIIs held 21.83% in CMC.
CMC's consolidated net profit rose 26.78% to Rs 89.43 crore on 11.10% increase in total income from operations to Rs 623.21 in Q4 March 2014 over Q3 December 2013.
CMC is a pioneer information technology solutions provider in India and is a subsidiary of Tata Consultancy Services, Asia's largest software company. Operating out of 18 offices and 180 service locations in the country, CMC employs over 11,000 people and has a wholly-owned subsidiary in USA called CMC Americas, Inc.
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