Offer for sale by the government of India of Equity Shares in
CMC Limited
Registered Office: CMC Centre, Old Mumbai Highway, Gachibowli, Hyderabad - 500 019
Tel: +91 40 2300 0101, Fax: +91 40 2300 0509

Offer for Sale by the Selling Shareholder of 3,976,374 Equity Shares of Rs. 10 each at a price of Rs. 485 per Equity Share in cash aggregating Rs. 1,904.43 million (hereinafter referred to as the "Offer").  The Offer would constitute 26.25% of the paid-u0p capital of CMC Limited (the "Company").   The Equity Shares being offered for sale are listed on The Stock Exchange, Mumbai.   The National Stock Exchange of India Limited.  The Hyderabad Stock Exchange Limited.  The Calcutta Stock Exchange Association Limited.  The Madras Stock Exchange Limited and The Delhi Stock Exchange Association Limited.

The Equity Shares  are tradeable on these exchanges.   The Company has applied for delisting from The Hyderabad Stock Exchange Limited.   The Calcutta Stock Exchange Association Limited.  The Madras Stock Exchange Limited and The Delhi Stock Exchange Association Limited.

The Equity Shares being offered pursuant to this Offer are already listed.  As advised by Securityes and Exchange Board of India, the SEBI Guidelined for public issues/offers do not apply to a listed company facilitating one of the shareholders to dispose of its holding through an offer for sale, such as this Offer.   However, the Selling Shareholder has voluntarily decided to adopt the SEBI Guidelines, particularly the guidelines for the 100% Book Building Process, save for certain deviations.  Pursuant to the decision of the Selling Shareholder, a maximum of 1,988,174 of the Offer shall be available for allocation on a ediscretionary basis to Qualified Institutional Buyers. Further, not less than 994,100 of the Offer shall be available for allocation on a proportionate basis to Retail Bidders, subject to valid Bids being received at or above the Offer Price.  The Selling Shareholder has decided to transfer the Equity Shares to RetailBidders at Rs 460.75 per Equity Share which is at 5% discount to the price for QIBs and NOn-Institutional Bidders.  The Selling Shareholder is solely responsible for this decision and the consequences thereof.   For further details, see "Terms of the Offer" on page 45 of the Final Sale Document.

The Selling Shareholder has received 128169 valid applications for 38184510 shares resulting in 9.6 times subscription as follows:

The level of subscription should not be taken to be indicative of the market price of the equity shares.

BASIS OF ALLOCATION

A) Allocation to Non Institutional Bidders:
The Basis fo Allocation to the Non Institutional Bidders who have bid for at or above the Offer Price of Rs. 485 per equity share, was finalised in consultation with the National Stock Exchange, Mumbai.  The total rumber of shares allocated in this category is 994100.  There were 474 valid applications and proportionate allotment has been make.

B) Allocation to Retail Individual Bidders:
The Basis of Allocation to the Retail Individual Bidders who have bid for at or above the Offer Price of Rs. 485 per equity share, was finalised in consultation with the National Stock Exchange, Mumbai, on a proportionate basis after rounding off to the nearest 1 share.  The total number of shares allocated in this category is 994100 at a price of Rs. 460.75 (after deducting the discount described above).  The category-wise details and the Basis of Allocation are as under:

C) Allocation to Qualified Institutionsl Buyers (QIB):

Date of completion of despatch of refund orders            : March 15, 2004
Date of credit of shares allocated to successful biddrs   : March 15, 2004

All correspondences with reference to this issue should be addressed to the Registrars to the Issue quoting full name of the First/Sole applicant, Serial Number of the bid-cum-application form, number of shares bid for, name of the Member of the Syndicate and Place where the bid was submitted and payment details at the following address:

MCS Limited 'Sri Padmavathi Bhavan', Plot No. 93, Road No. 16, MIDC Area, Andheri (East), Mumbai- 400093
Tel.: +91 22 2820 1785,  Fax.: +91 22 2820 1783, E-mail: cmcoffer@mcsind.com