MMTC drops to 52-week low on government stake-sale buzz

Meanwhile, the S&P BSE Sensex was down 65.39 points or 0.34% at 19,077.61.

On BSE, 66,256 shares were traded in the counter as against average daily volume of 1.93 lakh shares in the past one quarter.

The stock hit a low of Rs 191 so far during the day, which is also its 52-week low. The stock hit a high of Rs 206.25 so far during the day. The stock had hit a 52-week high of Rs 890 on 5 July 2012.

The stock underperformed the market over the past one month till 11 June 2013, declining 22.22% compared with the Sensex's 4.87% slide. The scrip also underperformed the market in past one quarter, sliding 30.7% as against Sensex's 2.56% slide.

The large-cap company has equity capital of Rs 100 crore. Face value per share is Re 1.

As per reports, the panel of ministers on disinvestment is likely to meet today, 12 June 2013 to decide on the base price for the government's sale of 9.33% stake in MMTC. The stake-sale through the offer for sale (OFS) is likely to hit the market tomorrow, 13 June 2013, reports added.

The Government of India owned 99.33% stake in MMTC (as per the shareholding pattern as on 31 March 2013).

Market regulator Securities & Exchange Board of India (Sebi) has mandated minimum public shareholding of 10% for state-run firms by August 2013. The stake sale would help the company to meet minimum public shareholding norms given by Sebi.

The stake sale, which was originally slated to take place in March 2013, was then deferred on valuation concerns.

MMTC's net profit fell 97.5% to Rs 2.21 crore on 31.4% decline in net sales to Rs 7287.69 crore in Q4 March 2013 over Q4 March 2012.

State-run MMTC is India's largest international trading company. MMTC is the largest non-oil importer in India.

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