MMTC tanks 6%, hits 52-week low on stake sale reports

NEW DELHI: MMTC Ltd slipped over 6 per cent to hit its 52-week low of Rs 191 in morning trade on Wednesday, after the government is expected to divest nearly 10 per cent stake in the company.

At 10:20 a.m.; MMTC recouped some of the losses and was trading 3.8 per cent lower at Rs 197.55. It hit a 52-week low of Rs 191 and a high of Rs 206.25 in trade today.

“A panel of ministers on disinvestment is likely to meet later today to decide on the base price for divesting 9.33 per cent stake in MMTC,” according to reports.

The Empowered Group of Ministers (EGoM) is headed by Finance Minister P Chidambaram.

“The government expects to raise Rs. 250-300 crore through the stake sale and the base or floor price would be "nowhere near the current market price,” PTI reported.

The government currently holds 99.33 per cent stake in MMTC and the stake sale would help the company to meet minimum public shareholding norms given by the Securities and Exchange Board of India ( Sebi).

The stake sale, which was originally slated to take place in March, was then deferred on valuation concerns.