MMTC disinvestment possible only in next fiscal: CMD

The Disinvestment Department is working on a proposal to seek Cabinet approval for sale of government equity in MMTC, but disinvestment in the trading giant would be possible only in the next fiscal.

Company's Chairman and Managing Director Sanjiv Batra told PTI that the company has already done the preliminary work required for the disinvestment.

Asked when the proposal could go to the Cabinet for clearance, Batra said, "That is done by the Disinvestment Department...They are preparing (the Cabinet note)".

The government has a 99.3 per cent equity in the company, which gets half of its Rs 36,000 crore business from import of about 140 tonnes of gold.

While the MMTC board has given the 'in-principle' approval to the government proposal for disinvestment, the stake sale may be possible only in the next fiscal, Batra said.

"We are looking at the time left. Already more than six months have gone and the time schedule required (for regulatory clearances) is more than six months. So (disinvestment will be done) may be next fiscal," he said.

Keen on unlocking value of public sector enterprises and to raise resources, the government is encouraging them to get listed on the stock exchanges.

While the MMTC shares are thinly traded in the market, the floating stock is so limited that it does not reflect the true value of the company, an official had said.

The share is quoted at a whopping Rs 35,400 a piece.