Govt to divest 15% stake in MMTC

Govt currently holds 89.93% in the trading giant; stake sale will help firm meet Sebi's minimum public shareholding norm

The central plans to sell 15 per cent stake in state-run trading entity MMTC this financial year.

"We are ready for it (the divestment)," MMTC Chairman Ved Prakash told reporters here.

At the current market price of Rs 52.80 apiece, sale of about 150 million shares would garner around Rs 800 crore for the exchequer. The government currently holds 89.93 per cent of equity in MMTC. The sale would help the company meet the minimum public shareholding norm of the Securities and Exchange Board of India.

The company also said it was optimistic that its gold imports would be about 50 tonnes in 2015-16, with the government's policy relaxation. In 2014-15, the company imported about 30 tonnes.

Prakash said silver imports would be about 200 tonnes in 2015-16, compared with 150 tonnes last year.

The company also plans to import liquefied natural gas (LNG) from the spot market to meet fuel demand of a fertiliser plant. Global gas prices have halved to $7-8 per million British thermal units. "LNG prices were ruling at $18-20...now, it is quite economical for the fertiliser industry," Prakash said.

A fertiliser company to which MMTC was supplying potash had approached it for arranging LNG import.