Shares of IT firm CMC tumbled over 14 per cent on Friday, wiping—out Rs 953.87 crore from its market capitalisation, after announcement that the company will be merged with Tata Consultancy Services. Scrip of the Tata Group company plunged 14.40 per cent to settle at Rs 1,872.65 on the BSE. In intra—day session, it tumbled 16.25 per cent to Rs 1,832.05. At the NSE, it slipped 14.49 per cent to end at Rs 1,862. Massive sell—off in the stock pulled down the company's market value by Rs 953.87 crore to Rs 5,674.13 crore. On the volume front, 1.18 lakh shares of the company changed hands at the BSE, while over 5 lakh shares were traded at the NSE during the day. The stock came under massive selling pressure in a knee— jerk reaction to merger announcement and overall weakness in IT stocks. The BSE IT index was down 4 per cent and ended at 10,130.95. 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 had said in a filing to the BSE on Thursday. CMC… Read full this story
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