The proposed 9.33 per cent stake sale of MMTC was deferred on Tuesday as the inter-ministerial expressed concerns over valuation of the company’s equity.
Originally the stake sale was supposed to hit the bourses on March 14. The government was expecting to raise `250-300 crore through the stake sale while its disinvestment target for the current fiscal is `24,000 crore.
“MMTC issue has been deferred for now... EGOM did not accept recommendations of merchant bankers on valuation issues,” Disinvestment secretary Ravi Mathur told reporters after the ministerial panel met on Tuesday. However the disinvestment secretary did not say when was the next meeting of the ministerial panel likely.
“It will most likely come up for discussion in the next financial year that gets underway in April,” sources claimed.
The Department of Disinvestment (DoD) has shortlisted three investment bankers - Avendus, IDBI Capital and IDFC to manage the stake sale of the PSU.
The stake sale would have enabled the company meet minimum 10 per cent public holding norm stipulated by market regulator SEBI.
The market capitalisation of the company is Rs 28, 600 crore of which the public free float is worth about Rs 1,430 crore.
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