Cabinet approves stake sales in India Tourism Development Corp Ltd and State Trading Corp of India Ltd

NEW DELHI: The Cabinet Committee on Economic Affairs (CCEA) on Thursday approved disinvestment of government stake in State Trading Corporation (STC) and ITDC, which would fetch around Rs 30 crore to the exchequer.

The Disinvestment Department had sought Cabinet nod to offload 5 per cent stake in India Tourism Development Corporation (ITDC) and 1.02 per cent in STC through the Offer For Sale (OFS) route.

"STC, ITDC disinvestment has been approved," sources said after the meeting of the Cabinet Committee on Economic Affairs (CCEA).

The government expects the sale of 5 per cent stake or 42.88 crore shares in ITDC to fetch Rs 23.58 crore.

Besides, it aims to garner about Rs 10 crore through disinvestment of 1.02 per cent, or 6.13 crore shares, in STC.

Government currently holds 92.11 per cent stake in ITDC and 91.02 per cent stake in STC.

The stake sale would help both the companies meet the minimum 10 per cent public holding norm of market regulator Securities and Exchange Board of India (Sebi).

The government is required to bring down its stake in these two companies to 90 per cent by August 8.

Shares of STC were trading 5.75 per cent lower at Rs 99.20 on the BSE in afternoon trade.