MMTC hits 52-week low on govt’s stake sale plans

NEW DELHI: MMTC Ltd slipped over 6 per cent to hit its 52-week low of Rs 380.80 in early trade on Monday, after the government announced that its offer-for sale for offloading 9.33 per cent stake in the trading giant is likely to hit the markets on March 14.

The Empowered Group of Ministers (EGoM) on disinvestment, headed by Finance Minister P Chidambaram, is scheduled to meet on March 12 to decide on the floor price for the proposed stake sale which is expected to rake in about Rs 300 crore to the exchequer.

At 11:05 am, MMTC recouped some of its morning losses and was trading 5.6 per cent lower at Rs 386.80. It has hit a record low of Rs 380.80 and a high of Rs 417.05 in trade today.

The government has shortlisted three merchant bankers, including IDFC, for selling over 9.33 crore shares or 9.33 per cent of its stake in MMTC in the current fiscal through an offer for sale (OFS).

“The Department of Disinvestment (DoD) has shortlisted three investment bankers - Avendus, IDBI Capital Market Services and IDFC - to manage the stake sale of the PSU,” a PTI report said.

“The stake sale would also help the company meet minimum 10 per cent public holding norms,” added the report.