Govt fixes Rs 60 per share as floor price for MMTC stake sale

The empowered group of ministers (EGoM) on disinvestment, headed by Finance Minister P Chidambaram, on Wednesday fixed the floor price of MMTC's share sale scheduled on Thursday at Rs 60 apiece, a 71 per cent discount to Wednesday's closing price of Rs 211.45 on the BSE.

The government will offload 9.33 per cent stake sale in Metals and Minerals Trading Corporation of India (MMTC) through offer for sale which may fetch the exchequer Rs 560 crore.

Speaking with media, Disinvestment Secretary Ravi Mathur said, "We will divest 9.33% in MMTC tomorrow through OFS route."

He further said the base or floor price fixed for OFS will be informed to the stock exchanges later in the evening.

The disinvestment in MMTC is a part of government plan which targets to raise Rs 40,000 crore from PSU stake sale in current fiscal.

The government currently holds 99.33 per cent stake in MMTC and the stake sale would help the company to meet Sebi's minimum public shareholding norm.

Meanwhile, Shares of MMTC closed at Rs 211.45 a piece, up 2.92 per cent on the BSE over the previous close.

Read more about: mmtc
Story first published: Thursday, June 13, 2013, 9:22 [IST]
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