Govt plans to divest 10 % stake in MMTC

Govt plans to divest 10 % stake in MMTC

New Delhi: The government plans to sell off 10% in trader MMTC, in line with a decision to float at least a tenth in state-run firms, the junior trade minister told Parliament on Monday.

The government holds 99.34% in MMTC. At the current market prices, the sale will fetch Rs178.55 billion.

By 3.13pm, shares in MMTC were trading 5.7% higher on the day at Rs35,715 in a weak Mumbai market.

“The decision has been informed to department of disinvestment who are preparing roadmap for divesture for the year 2009/10," Jyotiraditya Scindia told Parliament in a written response to a lawmaker’s question.

The government had taken a decision to cap its holdings in listed state-run firms at 90% and sell stakes in firms in which its shares were over this limit.