Merger with TCS pulls down CMC over 15%

MUMBAI: Shares of CMC plunged over 15 per cent in trade as investors booked profits following announcement of merger with TCS even as it reported decent quarterly results.

CMC posted a 13 per cent increase in net profit at Rs 76 crore during July-September quarter. Consolidated operating revenue grew 10 per cent to Rs 617 crore.

TCS announced the amalgamation of CMC, with itself. CMC’s shareholders will get 79 shares of TCS for every 100 equity shares of CMC.

According to analyst tracking the sector, the sharp fall in CMC is due to slightly skewed merger ratio with TCS. Also, the stock is expected to move in tandem with TCS now.

Meanwhile, shares of TCS were under pressure as the company missed street estimate on topline front.

At 09:55 a.m.; CMC was at Rs 1889.75, down 13.62 per cent, on the BSE. It plunged 16.25 per cent to touch intraday low of Rs 1,832.05.

TCS was at Rs 2,451, down 7.35 per cent, on the BSE. It fell 8.51 per cent intraday to touch a low of Rs 2451.