statesman news service
KOLKATA, 13 JUNE: MMTC’s divestment through offer for sale (OFS) route today attracted bids which were more than 1.5 times of the shares on offer, making it a successful beginning for the government’s divestment programme this financial year.
The issue attracted bids for over 14.42 crore shares, accounting for 154 per cent of 9.33 crore shares on offer at the close of market hours, according to data available with the Bombay Stock Exchange.
The indicative price, at which the bids were made, was 60.86 as against the floor price of Rs 60, announced by the government yesterday. At the indicative price, the share sale is expected to fetch over Rs 567 crore to the exchequer.
The stake sale would help the company meet the 10 per cent minimum public shareholding norm, as stipulated by the market regulator Securities and Exchange Board of India. The government held 99.3 per cent stake in the trading major before the OFS.
According to stock exchange data, more than 38 per cent bids were made with 100 per cent margin money, while the remaining 116 per cent bids were made with no margin money.
The government has embarked on an ambitious divestment programme this financial year, targeting to raise Rs 40,000 crore through this mode.
The government had shortlisted Avendus Securities Private Limited, IDBI Capital Market Services Limited and IDFC Securities Limited for managing the MMTC disinvestment.
Meanwhile, in stocks market today, MMTC suffered a steep fall of around 10 per cent and touched the lower circuit limit in opening trade, resulting in a halt in trading of the share for the entire day. In the Bombay Stock Exchange, the share price plunged by 9.98 per cent to Rs 190.35. In the National Stock Exchange, the scrip suffered an identical fall and touched its 52-week low at Rs 189.05.