CMC gains as RBI allows increase in FII limit up to 35%

CMC Ltd.(Amalgamated) | IT - Hardware | Consumer Durables | BSE: 517326 | NSE: CMC

23 May 2014 Evaluate

CMC is currently trading at Rs 1494.00, up by 22.30 points or 1.52% from its previous closing of Rs. 1471.70 on the BSE.

The scrip opened at Rs 1521.00 and has touched a high and low of Rs 1524.90 and Rs 1490.00 respectively. So far 3901 shares were traded on the counter.

The BSE group 'B' stock of face value Rs 10 has touched a 52 week high of Rs 1780.00 on 07-Jan-2014 and a 52 week low of Rs 1106.80 on 05-Aug-2013.

Last one week high and low of the scrip stood at Rs 1480.00 and Rs 1355.00 respectively. The current market cap of the company is Rs 4532.88 crore.

The promoters holding in the company stood at 51.12% while Institutions and Non-Institutions held 38.94% and 9.94% respectively.

Reserve Bank of India (RBI) has allowed CMC to raise its foreign investment limit up to 35% of paid-up capital. The company 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 has 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).

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 Hence, the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect.

CMC is leading system engineering and Integration Company in India and is a subsidiary of Tata Consultancy Services, Asia’s largest software company. Operating out of 18 offices and 180 services locations in the country, CMC employs over 10,000 people and has a wholly owned subsidiary in USA called CMC Americas, Inc.