Public sector trading agency MMTC is ready to divest 15 per cent more of its equity in the current fiscal in line with the government’s intent of increasing public holding in State-run units to at least 25 per cent.

Based on current market valuation, the stake sale could fetch the exchequer an estimated ₹800 crore.

“We have told the government that we are ready to start the disinvestment process and could divest as much as 15 per cent in the current fiscal.

“The Centre has to take a final call on how much stake-sale will happen this year,” MMTC Chairman and Managing Director Ved Prakash said on Thursday.

Going by the current market valuation of ₹52.80 a share, the proposed sale of about 15 crore shares will get the exchequer roughly ₹800 crore, another MMTC official pointed out.

SEBI norm

The government holds 90 per stake in MMTC, as 10 per cent of equity has already been divested.

Although market regulator SEBI has proposed that the government should pare its stake in public sector companies to 75 per cent or below by 2017, we don’t have issues meeting the goal this year itself, Prakash added.

The newly-appointed CMD said that the Mini-ratna company was working toward doubling its turnover to ₹40,000 crore from ₹18,000 crore in five years and also earn the status of Navratna.

On gold imports, Prakash said with the government relaxing its restrictions, MMTC is hoping to double its import to 50 tonne this fiscal.

To increase the turnover, MMTC is working on diversifying its export basket by including project and engineering goods, and chemicals and pharmaceuticals. “The two new trade verticals will be in addition to the existing six verticals and is in line with the government’s thrust on increasing exports,” Prakash said on Thursday.

Import LNG

The CMD also shared the agency’s plans to import liquefied natural gas from the spot market to meet the fuel demand of a fertiliser plant (name withheld), as global gas prices have fallen to $7-8 a million Btu.

Related Topics
comment COMMENT NOW