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MMTC ready to divest 15% more equity this fiscal

MMTC ready to divest 15% more equity this fiscal
“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 Government has to take a final call on how much stake sale will happen this year,” MMTC’s newly appointed CMD Ved Prakash declared.

The government is planning to sell 15 per cent stake in state-run trading firm MMTC in the current fiscal which would fetch about Rs 800 crore to the exchequer.

“The government plans to divest 15 per cent stake in the company. We are ready for it,” MMTC Chairman Ved Prakash said.  At the current market price of Rs 52.80 apiece, sale of about 15 crore shares would garner around Rs 800 crore for the exchequer.

MMTC has been the largest importer of gold for the last 25 years and also a major importer of Silver in India.

It is one of the pioneers in import of rough diamonds and has its own manufacturing unit of gold and silver medallions and own brand of sterling silverware ‘Sanchi’ with 92.5 purity. Besides, it is also a supplier of silver coins to Mata Vaishno Devi Trust, Tirupati trust and is in talks with Himachal trust for the same. The Company is a leading importer of Non-Coking (Thermal) Coal, Coking Coal and Low Ash Metallurgical Coke providing services to leading power and steel industries in the country.

State-owned trading firm MMTC is optimistic that its gold imports are expected to reach about 50 tonnes this fiscal on the back of relaxation in gold policy by the government.  Last fiscal, the company imported about 30 tonnes gold.

Gold shipments have been steadily rising after the Reserve Bank in November scrapped the 80:20 rule, under which it was mandatory for traders to export 20 per cent of the import.
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