The government decided to sell 9.33 percent stake in MMTC today through an OFS route; a deal that would fetch the government around Rs 600 crore.
The government has decided to sell 9.33 percent stake in MMTC today and has fixed the floor price at Rs 60 apiece, which will fetch the exchequer about Rs 600 crore.
"We will divest 9.33 percent in MMTC tomorrow through OFS route," Disinvestment Secretary Ravi Mathur told reporters here on Wednesday.
Also read: MMTC stake sale likely on June 13
The Empowered Group of Ministers (EGoM), headed by Finance Minister P Chidambaram, has fixed the base price at Rs 60 apiece for MMTC disinvestment, an official source told PTI.
The stake sale in MMTC, said a top Commerce Ministry official, would fetch the government around Rs 600 crore.
MMTC disinvestment would be the first stake sale of the government in the current fiscal. The government aims to raise Rs 40,000 crore from PSU stake sale in 2013-14.
Shares of MMTC closed at Rs 211.45 a piece on the BSE on Wednesday, up 2.92 percent over the previous close. There is a huge difference between the floor price and the market price of MMTC as the scrip is illiquid, an official in disinvestment department said.
The government currently holds 99.33 percent stake in state-run trading giant and the stake sale would help the company to meet Sebi's minimum public shareholding norm.
The stake sale, which was originally slated to take place in March, was deferred on valuation concerns.
Since the company's audited results are out now and after reviewing the final balance sheet for the last fiscal, the disinvestment department would be able to decide on the base price for the OFS.
In the 2012-13 fiscal, MMTC reported a loss of Rs 70.62 crore, due to 57 percent 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 percent stake sale of the PSU.