MMTC sheds 48.81% in 11 days post divestment of 9.33% stake

Meanwhile, the S&P BSE Sensex was up 195.07 points, or 1.05%, to 18,747.19.

On BSE, 205 shares were traded in the counter as against an average daily volume of 1 lakh shares in the past one quarter.

The stock opened with a downward gap, declining by the maximum 5% daily circuit and remained locked at the 5% level at Rs 108.25 so far during the day, which is also its 52-week low for the counter. 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 26 June 2013, sliding 51.45% compared with the Sensex's 5.85% fall. The scrip had also underperformed the market in past one quarter, falling 44.96% as against Sensex's 0.81% fall.

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

Shares of MMTC have slumped 48.81% in 11 trading sessions from a recent high of Rs 211.45 on 12 June 2013. On 13 June 2013, the Government of India (GoI) sold 9.33% stake in MMTC via Offer for Sale (OFS) through stock exchanges mechanism at an indicative price of Rs 60.86 per share, at a discount of 71.21% to the closing price of the stock of Rs 211.45 on 12 June 2013.

The divestment was done to make the company compliant to the public shareholding requirements under the Securities Contract Regulations (Rules) (SCRR). Sebi has mandated minimum public shareholding of 10% for state-run firms by 8 August 2013. Post stake sale, the GoI holds 90% stake in MMTC.

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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