STC, MMTC shares drop up to 20 pc amid reports of biz closure

Shares of State Trading Corporation (STC) and MMTC on Tuesday tumbled up to 20 per cent amid reports of closure of their business.

STC shares cracked 19.61 per cent to close at Rs 107.40 on the BSE. During the day, it tumbled 19.98 per cent to Rs 106.90.

MMTC also dropped 16.57 per cent to close at Rs 20.65. During the trade, it tanked 17.17 per cent to Rs 20.50.

The commerce ministry has decided to close down debt-ridden STC as well as Project and Equipment Corporation of India (PEC), and it will prepare a note to seek Cabinet approval for the same, sources had said on Monday.

Meanwhile, Commerce and Industry Minister Piyush Goyal on Tuesday said all options are open with the ministry for closure or merger of three public sector undertakings - MMTC, STC and PEC.

According to STC's annual report for 2018-19, the company is facing "severe liquidity crisis" as all the lender banks have reported its account as NPA due to non-payment of interest on the banking limits availed by the company".

STC was set up in 1956 as a trading arm of the government to undertake trade with east European countries.

MMTC was created in 1963 as an independent entity on separation from STC primarily to deal in exports of minerals and ores and imports of non-ferrous metals.