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Govt to divest 15 per cent stake in MMTC, to fetch Rs 800 crore

The government currently holds 89.93 per cent stake in the state-run trading giant.

twitter-logo PTI   New Delhi     Last Updated: April 16, 2015  | 15:06 IST
Govt to divest 15% stake in MMTC, to fetch Rs 800 crore
The government currently holds 89.93 per cent stake in the state-run trading giant

The government is planning to sell 15 per cent stake in state-run trading firm MMTC in the current financial year which would fetch about Rs 800 crore to the exchequer.

The government currently holds 89.93 per cent stake in the state-run trading giant and the stake sale would help the company meet the market regulator's minimum public shareholding norm.

"The government plans to divest 15 per cent stake in the company. We are ready for it," MMTC Chairman Ved Prakash told reporters in the national capital on Thursday.

Sebi has made it mandatory to have a minimum public holding of 25 per cent in all PSUs.

At the current market price of Rs 52.80 apiece, sale of about 15 crore shares would garner around Rs 800 crore for the exchequer.

The stake sale proceeds would help the government inch towards the disinvestment target of Rs 41,000 crore fixed for the current fiscal.

MMTC is one of over a dozen PSUs shortlisted by the government as probable disinvestment candidates. The other companies which are lined up include IOC, NTPC, BHEL, NALCO, NMDC, National Fertilizers, and Rashtriya Chemicals and Fertilizers.

So far, the government has already raised Rs 1,550 crore through 5 per cent stake dilution in REC.

It had last sold 9.33 per cent stake in MMTC in June 2013 through which it had raised about Rs 570 crore.

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