MMTC extends fall to 52-week low as Govt pares stake through OFS

Meanwhile, the S&P BSE Sensex was down 8.39 points or 0.04% at 19,169.54.

On BSE, 887 shares were traded in the counter with pending sell orders of 86.90 lakh shares at lower circuit. The stock has an average daily volume of 1.34 lakh shares in the past one quarter.

The stock opened at 5% lower circuit of Rs 162.80 and remained locked at the lower circuit so far during the day. The stock's low of Rs 162.80 is a 52-week low. The stock had hit a 52-week high of Rs 890 on 5 July 2012.

The stock had underperformed the market over the past one month till 14 June 2013, falling 34.61% compared with the Sensex's 2.76% fall. The scrip had also underperformed the market in past one quarter, sliding 43.04% as against Sensex's 2.01% fall.

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

Shares of MMTC have been on a downward journey recently, falling 23.01% in three trading days from a recent high of Rs 211.45 on 12 June 2013.

Shares were under pressure as the government had put on block 9.33 crore equity shares, aggregating to 9.33% of the total paid up equity share capital of MMTC through an offer for sale (OFS) route via the stock exchanges mechanism on Thursday, 13 June 2013. The offer for sale (OFS) was subscribed 154.60%. The OFS received total bids for 14.42 crore shares at an indicative price of Rs 60.86 per share. The government had fixed the floor price for the OFS at Rs 60 per share.

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

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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