MMTC is trading lower by 2.5% to Rs 221 on reports that the government is likely to divest it's partial stake in the company through auction route during current month or early next month.
The stock opened at Rs 227 and hit a low of Rs 220 on BSE. A combined 133,821 shares have changed hands on the counter till 1007 hours on BSE and NSE.
“The Department of Disinvestment is planning to launch this month or early May the stake sale in MMTC,” the PTI report suggests.
The government has proposed to sell over 93.3 million shares or 9.33% of its stake in MMTC through an offer for sale (OFS). The stake sale would have enabled the company to meet minimum 10% public holding norm stipulated by market regulator Sebi.
“The disinvestment department was waiting for the equity markets to stabilise before undertaking the stake sale of MMTC,” added report quoting a source in the finance ministry.
Earlier, last month, the empowered Group of Ministers (eGoM) had deferred the decision on concerns over valuation of the company's equity. The issue was originally planned to hit the markets on March 14.
Meanwhile, the state-owned trading company has underperformed the market by falling 64% so far in current calendar year 2013 compared to 5% drop in benchmark Sensex.
The stock opened at Rs 227 and hit a low of Rs 220 on BSE. A combined 133,821 shares have changed hands on the counter till 1007 hours on BSE and NSE.
“The Department of Disinvestment is planning to launch this month or early May the stake sale in MMTC,” the PTI report suggests.
The government has proposed to sell over 93.3 million shares or 9.33% of its stake in MMTC through an offer for sale (OFS). The stake sale would have enabled the company to meet minimum 10% public holding norm stipulated by market regulator Sebi.
“The disinvestment department was waiting for the equity markets to stabilise before undertaking the stake sale of MMTC,” added report quoting a source in the finance ministry.
Earlier, last month, the empowered Group of Ministers (eGoM) had deferred the decision on concerns over valuation of the company's equity. The issue was originally planned to hit the markets on March 14.
Meanwhile, the state-owned trading company has underperformed the market by falling 64% so far in current calendar year 2013 compared to 5% drop in benchmark Sensex.