MMTC fell 3.66% to Rs 218.20 at 13:19 IST on BSE, on reports that the government is likely to pare its stake in the company in current month or early next month.
Meanwhile, the BSE Sensex was up 73.12 points or 0.4% at 18,299.59
On BSE, 69,131 shares were traded in the counter as against average daily volume of 2.55 lakh shares in the past one quarter.
The stock hit a high of Rs 228.70 and low of Rs 217.40 so far during the day. The stock had hit a 52-week low of Rs 193.35 on 1 April 2013. The stock had hit a 52-week high of Rs 890 on 5 July 2012.
The stock underperformed the market over the past one month till 9 April 2013, declining 25.38% compared with the Sensex's 7.4% fall. The scrip had also underperformed the market in past one quarter, sliding 64.42% as against Sensex's 7.32% fall.
The large-cap company has equity capital of Rs 100 crore. Face value per share is Re 1.
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As per reports, the Department of Disinvestment (DoD) is planning to launch this month or early May an offer for sale (OFS) for sale of government's 9.33% stake in MMTC. The disinvestment department is waiting for the equity markets to stabilise before doing the stake sale of MMTC, reports added.
Shares of MMTC were battered severely recently on worries of a likely steep discount of floor price to the prevailing market price. Earlier, last month, the empowered Group of Ministers (eGoM) had deferred the stake-sale decision on concerns over valuation.
The Government of India owned 99.33% stake in MMTC (as per the shareholding pattern as on 31 December 2012).
Market regulator Securities & Exchange Board of India (Sebi) has mandated minimum public shareholding of 25% for private companies and 10% for state-run firms. As per the Sebi mandated minimum public shareholding rule, private-sector companies must cut founders' stake to adhere to the rules by 13 June 2013, while the deadline for state-run firms is 13 August 2013.
MMTC reported net profit of Rs 28.84 crore in Q3 December 2012 compared to net loss of Rs 91.31 crore in Q3 December 2011. Net sales fell 62.1% to Rs 7161.51 crore in Q3 December 2012 over Q3 December 2011.
State-run MMTC is India's largest international trading company. MMTC is the largest non-oil importer in India.
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