MMTC tanks 10% to 52-week low as Govt fixes floor price for OFS

Meanwhile, the S&P BSE Sensex was down 205.95 points or 1.08% at 18,835.18.

On BSE, 4,216 shares were traded in the counter with pending sell orders of 33.63 lakh shares at lower circuit. The stock has an average daily volume of 1.57 lakh shares in the past one quarter.

The stock opened at 10% lower circuit of Rs 190.35 and remained locked at the lower circuit so far during the day. The stock's low of Rs 190.35 is a 52-week low. 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 12 June 2013, falling 19.95% compared with the Sensex's 5.37% decline. The scrip had also underperformed the market in past one quarter, sliding 33.44% as against Sensex's 2.68% fall.

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

Bids were received for a total of 73.30 lakh shares at an indicative price of Rs 60.20 per share for the Offer for Sale (OFS) of the company's shares till 10:35 IST, as per data from the stock exchanges.

MMTC after trading hours on Wednesday, 12 June 2013 said that the government has decided to sell 9.33 crore equity shares, aggregating to 9.33% of the total paid up equity share capital of the company through offer for sale (OFS) route via the stock exchanges mechanism today, 13 June 2013. The government has fixed the floor price at Rs 60 per share, a staggering 71.62% discount to MMTC's Wednesday's closing price on BSE. Shares of MMTC had gained 2.92% to settle at Rs 211.45 on Wednesday, 12 June 2013.

The stake sale would help MMTC to meet minimum public shareholding norms given by Sebi. The Government of India currently owns 99.33% stake in the company (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, 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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