Government to divest aound 25% stake in MSTC

Kolkata, June 15:  The central government would divest its stake in MSTC by around 25 per cent of the total share capital in the current financial year, a top company official said on Thursday.

"At present the government has 89.85 per cent stake in the company. The government has decided they would be diluting 25 per cent of its holding in the company. With 25 per cent dilution, the government shareholding in the company would get reduced to around 65 per cent," said company's Director, Finance, A.K Basu.

In April, the union cabinet approved stake sales in 11 public sector companies as part of its divestment plans in 2017-18.

In May, the company issued bonus share of ratio 1:1, enhancing the share capital to Rs 35.2 crore.

Basu said the government has already issued tender last month for engaging legal adviser, asset valuer and transaction adviser.

The entire process is being handled by the Department of Investment and Public Asset Management (DIPAM), he said.

The government has also asked mini ratna public sector undertaking to go for strategic disinvestment of its wholly-owned subsidiary Ferro Scrap Nigam Ltd.

Basu said the company would be selling off its entire stake in the subsidiary firm to private companies.