MMTC surges 15% on bonus issue proposal

The stock surged 15% to Rs 59.75 on the BSE after the state-owned company said that its board will meet on Monday, March 19, 2018 to consider bonus issue proposal.

Shares of MMTC have surged 15% to Rs 59.75 per share on the BSE on back of heavy volumes after the state-owned company said that its board will meet on Monday, March 19, 2018 to consider bonus issue proposal.

“The board of directors of MMTC shall consider and approve the proposal for issue of bonus shares subject to consent of the President of India vide Article 46 of the AOA of the company, in its meeting to be held on 19th March 2018,” the company said in a regulatory filing.

Earlier, in July 2010, MMTC had issued bonus shares in the ratio of 1:1 i.e. one bonus equity share for every one share held on the record date.

In past one year, the stock had underperformed the market by falling 12% as compared to 15% rise in the S&P BSE Sensex till Wednesday.

At 09.35 am; it was trading 14% higher at Rs 58.80 against 0.17% decline in the benchmark index. The trading volumes on the counter more than doubled with a combined 4.06 million shares changed hands on the BSE and NSE so far.