New Delhi: A panel of ministers on disinvestment headed by Finance Minister P Chidambaram will meet on Wednesday to decide the base price for the sale of stake of Metals and Minerals Trading Corporation of India. The sale of 9.33 per cent of MMTC's stake is expected to begin by June 13.
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".
The government currently holds 99.33 per cent stake in MMTC and the stake sale would help the company to meet Sebi's minimum public shareholding norm.
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, 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 the shares of MMTC, the official had said.
In the 2012-13 fiscal, 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. The company had reported a profit of Rs 70.72 crore in 2011-12.
The 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.
With additional information from PTI
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