Govt invites merchant bankers for managing MMTC,STC share sale

The government today invited merchant bankers for managing its share sale in MMTC and STC, which could fetch about Rs 650 crore to the exchequer.
The government plans to disinvest 15 per cent each in Metals and Minerals Trading Corporation of India (MMTC) and State Trading Corporation (STC) through an offer for sale (OFS).
At the current market prices, stake sale in MMTC would fetch Rs 570 crore, which that in STC would garner Rs 84 crore to the exchequer.
Government currently holds 89.93 per cent in MMTC and 90 per cent in STC.
Further, the government is considering to allot up to 5 per cent of the OFS size to employees of the companies at a 5 per cent discount to issue price.

The merchant bankers will have to submit their bids to the Department of Investment and Public Asset Management (DIPAM) by May 30.
The government had last in June 2013 sold 9.33 per cent stake in MMTC. Besides, in August, 2013 it sold 1.02 per cent in STC.