MMTC stake sale likely on June 13 - NDTV

New Delhi: The panel of ministers on disinvestment is likely to meet on Wednesday to decide on the base price for MMTC stake sale, the issue of which is expected to hit the market on June 13. "The EGoM is scheduled to meet tomorrow to derive at the base price for divesting 9.33 per cent stake in MMTC," an official said. The Empowered Group of Ministers (EGoM) is headed by Finance Minister P Chidambaram. The government expects to raise Rs 250-300 crore through the stake sale and the base or floor price would be "nowhere near the current market price". Shares in MMTC, on Tuesday, ended  at Rs 205.45 a piece on the BSE, down 4.42 per cent over the previous close. The government currently holds 99.33 per cent stake in MMTC and the stake sale would help the company to meet minimum public shareholding norms given by the Securities and Exchange Board of India (Sebi). The stake sale, which was originally slated to take place in March, was then deferred on valuation concerns. Since the company's audited results are out now and after reviewing the final balance sheet for the last fiscal year, the disinvestment department would be able to decide on the base price for offer for sale (OFS). This will help in knowing the real value of MMTC shares, the official said. In fiscal year 2012-13, MMTC reported a loss of Rs 70.62 crore, due to 57 per cent decline in total revenues during the period as compared to previous fiscal year. The company had reported a profit of Rs 70.72 crore in 2011-12. The department of divestment (DoD) had shortlisted three investment bankers - Avendus, IDBI Capital Market Services and IDFC - to manage the 9.33 crore shares or 9.33 per cent stake sale of the PSU. via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNF3ieyv5isuvUbipM7zC-3vWCCerw&url=http://profit.ndtv.com/news/corporates/article-mmtc-stake-sale-likely-on-june-13-323254

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