A Tale of Transition
CMC Limited was a state-owned public sector enterprise till 2001, when the government of India decided to divest from the company, and Tata Sons Ltd acquired a controlling stake, bringing CMC into the Tata group. In March 2004, Tata Sons transferred its entire shareholding of 77,44,961 shares in CMC – amounting to 51.12 per cent of the total share capital – to Tata Consultancy Services Ltd (TCS), in an off-market transaction.
CMC is now a subsidiary of TCS. However, this does not result in any change in the management and control of CMC, as 90 per cent of the equity shares of TCS are held by Tata Sons.
In 2004, the government divested its remaining 26.5 per cent stake to the public. As a result, the government has no shareholding in CMC, and it is now an entirely private sector company. We have aligned our development activities to our new business objectives, based on our interactions with customers and markets and close encounters with academia, research institutions and the research laboratories of our affiliates.
In the year 2011, the Board of CMC decided to issue Bonus Shares to all existing equity shareholders in the ratio of 1:1. Consequent to the allotment of Bonus Shares on 10th June, 2011, the issued and paid up capital of the company stood at Rs. 30.30 crores.