MMTC stake sale today; floor price at Rs 60/share

Kickstarting its Rs 40,000-crore divestment programme, the government said on Wednesday it will sell 9.33 per cent stake in MMTC, which is expected to fetch around Rs 600 crore.

The divestment will be done on Thursday through the offer for sale route and the floor price has been fixed at Rs 60 apiece. MMTC disinvestment is the first stake sale of the government in the current fiscal. The government, which currently holds 99.33 per cent stake in the company, will still remain a majority stake holder after the sale.

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

In 2012-13, MMTC reported a loss of Rs 70.62 crore, due to 57 per cent decline in total revenues during the period as compared to previous fiscal. The company had reported a profit of Rs 70.72 crore in 2011-12. The DoD had shortlisted three investment bankers — Avendus, IDBI Capital Market Services and IDFC — to manage the 9.33 crore shares or 9.33 per cent stake sale of the PSU.