Shares of State Trading Corporation (STC) and Metals & Miners Trading Corporation of India (MMTC) cracked as much as 18% in intra-day trade on Tuesday after reports came in that the Commerce Ministry has taken a decision to shut down operations of these state-run trading firms together with the Project and Equipment Corporation of India (PEC).
As per the Economic Times report it is learnt that the department of Commerce may soon put up the proposal before the Cabinet.
Another report by PTI suggested that it was agreed that the ministry will carve out a complete note for shutting down operations of both PEC and STC for the Cabinet within a definite time period, owing to the unsteady financial health of both these firms.
As per the annual report of STC for the year 2018-19, the firm is under severe liquidity crisis as all of the lenders have marked the company's account as non-performing as STC failed to service the interest on the availed credit limits. STC, set-up in the year 1956 as a government of India trading unit, carried out trade activity with Eastern European nations.
Last the share of STC quoted at Rs. 110.20, down 17.52% or Rs. 23.40 while during the day it hit a low of Rs. 108.45 per share.
MMTC shares on the other hand cracked 16.3% to hit a day's low of Rs. 20.70 on the BSE.