EGoM to decide on MMTC stake sale floor price on Tuesday
1 min read 11 Mar 2013, 09:16 PM ISTShare sale, which is likely to hit the markets on 14 March, can fetch around Rs300 crore to the exchequer
Premium(Priyanka Parashar/Mint)
New Delhi: An inter-ministerial panel is likely to decide on Tuesday the floor price for 9.33% stake sale in Minerals and Metals Trading Corp (MMTC), which can fetch around Rs300 crore to the exchequer at current rates.
The empowered Group of Ministers (eGoM) on disinvestment, headed by finance minister P. Chidambaram, is likely to meet on Tuesday to decide on the base price for the share sale, sources said.
The share sale is likely to hit the markets on 14 March, they added.
The government has shortlisted three merchant bankers, including IDFC, for selling over 9.33 crore shares or 9.33% of its stake in MMTC in the current fiscal through an offer for sale (OFS).
Since the public float of the company is very less, the merchant bankers are in the process of evaluating the valuation of the shares which will be acceptable to investors.
“We are expecting somewhere between Rs250-300 crore through the stake sale," another official said.
Shares of MMTC closed at Rs296.45 apiece on the BSE.
The department of disinvestment (DoD) has shortlisted three investment bankers—Avendus, IDBI Capital Market Services and IDFC—to manage the stake sale of the public sector unit (PSU). The stake sale would also help the company meet minimum 10% public holding norms. The DoD has initiated the process of investor meet for selling shares in the ‘Miniratna’.
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