The Centre has proposed to offload 25 per cent stake in MSTC through the offer for sale (OFS) route, and the process is likely to be completed by March 2019. The divestment would bring down government holding to 64 per cent from 89.85 per cent.
"We are are in need of capital to meet our expansion plans. We are exploring options for 10 per cent fresh equity issue, as the government's dilution of stake will not bring any capital to the company," a top MSTC official told PTI.
The company has targeted north eastern states like Tripura, where it sees huge demand for e-auction services in agri-products, but needs more capital to go ahead with the plan, MSTC officials said.
It has identified 25-30 agri products for e-auction, including turmeric, oranges, kiwis and large cardamoms, they said.
In the current fiscal, MSTC had conducted e-auction of ginger, winning contracts of 1,000 tonne. However, owing to logistics issues, only 100 tonne could be delivered.
MSTC officials are hopeful that such bottlenecks can be resolved through inland waterways.
MSTC is aiming at a net profit of Rs 100 crore in the 2018-19 fiscal from Rs 76 crore registered in 2017-18.