Disinvestment: 15% stake-sale in MMTC to fetch about Rs 800 crore

The government is planning to sell 15%cent stake in state-run trading firm MMTC in the current fiscal which would fetch about Rs 800 crore to the exchequer.

"The government plans to divest 15% stake in the company. We are ready for it," MMTC Chairman Ved Prakash told reporters here.

At the current market price of Rs 52.80 apiece, sale of about 15 crore shares would garner around Rs 800 crore for the exchequer.

The government currently holds 89.93% stake in the state-run trading giant and the stake sale would help the company meet Sebi's minimum public shareholding norm.

Market regulator Sebi has made it mandatory to have a minimum public holding of 25% in all PSUs.

The stake sale proceeds would help the government inch towards the disinvestment target of Rs 41,000 crore fixed for the current fiscal. So far, it has already raised Rs 1,550 crore through 5% stake dilution in REC.

The government had last sold 9.33% stake in MMTC in June 2013 through which it had raised about Rs 570 crore.

MMTC is one of over a dozen PSUs shortlisted by the government as probable disinvestment candidates.

The other companies which are lined up include IOC, NTPC, BHEL, NALCO, NMDC, National Fertilizers, and Rashtriya Chemicals and Fertilizers Ltd.