Metals and Minerals Trading Corporation of India (MMTC) is one of the two highest earners of foreign exchange for India (after Petroleum Refining companies) and India’s largest public sector trading body. MMTC’s diverse trade activities cover Third Country Trade, Joint Ventures and Link Deals and all modern forms of international trading.
Shares of MMTC Ltd went down by 10%, in early trade on Bombay Stock Exchange (BSE) on Thursday, June 14, 2013, as government’s 9.33% stake sale of the company commenced on the bourses. The minimum offer price for the shares of MMTC is set at Rs 60 per share.
Metals and Minerals Trading Corporation of India
An official from Disinvestment Department said, “There is a huge difference between the floor price and the market price of MMTC as the scrip is illiquid.”
The Empowered Group of Ministers (EGoM) on disinvestment, headed by Finance Minister P.Chidambram cleared 9.33 crore shares of stake sale of MMTC through the Offer for Sale (OFS) route on 12th June, 2013.
Confident of achieving the target, Finance Minister P.Chidambram said, “While kicking off the disinvestment today with MMTC’s 9.33 per cent stake sale, I have enough time to achieve the target”.
This is the first disinvestment in the current FY. This stake sale will help the company to meet the 10% minimum public shareholding norm of market regulator SEBI. The Disinvestment Department had shortlisted three investment bankers namely Avendus, IDBI Capital Market Services and IDFC, to manage the stake sale of MMTC.