MMTC spurts 6% amid tie up on sovereign gold coins

NEW DELHI: Shares of MMTC shot up nearly 6 per cent in Thursday’s trade after the state-run company said it had tied up with seven banks for distribution of sovereign gold coins.

“The agreement with the banks says they can distribute these sovereign gold coins anywhere in the world where they have a presence. South Africa is a major market for sovereign gold coins as NRIs there can easily associate with them which carry a Gandhi image,” a senior MMTC official involved in distribution process told ET.

Following the announcement, the stock surged 5.75 per cent to hit a high of Rs 55.15 on BSE. This was the 52-week high for the stock. Thursday’s gains marked the third day of rise for the stock. The stock had jumped 4.72 per cent on Wednesday.

Banks with which MMTC has made arrangements include HDFC Bank, ICICI Bank, Yes Bank, Indian Overseas Bank, Vijaya Bank, Federal Bank and Andhra Bank.

“Once we make inroads in these overseas markets, we will move to the US where a lot of NRIs reside,” the official told ET.