CMC to merge with TCS; stock dips over 10%

Shares of CMC dipped 13% to Rs 1,886 on NSE.

Shares of CMC has dipped 13% to Rs 1,886 on National Stock Exchange (NSE) after IT firm said it will be merged with the group firm Tata Consultancy Services (TCS).

"The Board of Directors of CMC and TCS have approved the amalgamation of CMC with TCS pursuant to and subject to the provisions of Sections 391 to 394 of the Companies Act, 1956," CMC said in a filing to the BSE.

CMC shareholders will get 79 equity shares of Re 1 each of TCS for every 100 equity shares of Rs 10 each of CMC, it added.
 

Meanwhile, CMC has posted a 13.43% rise in net profit on a consolidated basis at Rs 76 crore for the second quarter ended September 30, compared with Rs 67 crore in the same period a year ago. Its total income rose to Rs 619 crore from Rs 563 crore in the same period a year ago.

The stock opened at Rs 2,039 and hit a low of Rs 1,832 on NSE. A combined around 300,000 shares changed hands on the counter in early morning deals on NSE and BSE.