Govt to divest 15% stake in MMTC; to fetch about Rs 800cr

The government is planning to sell 15 percent stake in state-run trading firm MMTC in the current fiscal which would fetch about Rs 800 crore to the exchequer. "The government plans to divest 15 percent stake in the company. We are ready for it," MMTC Chairman Ved Prakash told reporters here.

At the current market price of Rs 52.80 apiece, sale of about 15 crore shares would garner around Rs 800 crore for the exchequer.

The government currently holds 89.93 percent stake in the state-run trading giant and the stake sale would help the company meet Sebi's minimum public shareholding norm. Market regulator Sebi has made it mandatory to have a minimum public holding of 25 percent in all PSUs.

The stake sale proceeds would help the government inch towards the disinvestment target of Rs 41,000 crore fixed for the current fiscal. So far, it has already raised Rs 1,550 crore through 5 percent stake dilution in REC. The government had last sold 9.33 percent stake in MMTC in June 2013 through which it had raised about Rs 570 crore.