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MMTC surges as board approves ICEX stake sale

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Capital Market
Last Updated : Sep 23 2015 | 12:02 AM IST

MMTC rose 5.21% to Rs 44.40 at 12:40 IST on BSE after the company said that board in its meeting held on 11 September 2015 has approved the proposal for sale of 10% stake in Indian Commodity Exchange.

The company made announcement after market hours yesterday, 21 September 2015,

Meanwhile, the S&P BSE Sensex was up 80.97 points or 0.31% at 26,273.95.

On BSE, so far 2.64 lakh shares were traded in the counter as against average daily volume of 2.89 lakh shares in the past one quarter.

The stock hit a high of Rs 44.95 and a low of Rs 43.30 so far during the day. The stock had hit a 52-week high of Rs 73.20 on 19 September 2014. The stock had hit a 52-week low of Rs 38 on 25 August 2015.

The stock had underperformed the market over the past one month till 21 September 2015, falling 4.74% compared with Sensex's 4.29% fall. The scrip had however outperformed the market in past one quarter, dropping 4.09% as against Sensex's 4.11% fall.

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The mid-cap firm has equity capital of Rs 100 crore. Face value per share is Re 1.

MMTC said the board has approved the proposal for sale of 10% stake in commodity bourse, Indian Commodity Exchange (ICEX). MMTC will sell 5% each in ICEX to the two bidders who participated in the global tender for the stake sale. The stake sale is subject to the approval by the Government and Forward Markets Commission. MMTC currently holds 26% in ICEX.

The state-run company has been reportedly looking for investors to offload its 26% stake in ICEX, which wound up its operations towards the end of 2013.

During the end of 2013, the ICEX had decided to wind up operations and trading was accordingly suspended on 24 December 2013 after the business volumes got affected due to several factors including imposition of commodity transaction tax and the Rs 5500 crore payment scam at National Spot Exchange (NSEL).

MMTC's reported net loss of Rs 31.22 crore in Q1 June 2015 as compared to net profit of Rs 40.77 crore in Q1 June 2014. Total income dropped 60.4% to Rs 2064.88 crore in Q1 June 2015 over Q1 June 2014.

MMTC is a leading international trading company. It is the largest non-oil importer in India. MMTC's diverse trade activities encompass Third Country Trade, Joint Ventures, Link Deals - all modern day tools of international trading. Government of India (GoI) holds 89.93% stake in MMTC (as per the shareholding pattern as on 30 June 2015).

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First Published: Sep 22 2015 | 12:36 PM IST

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