Govt defers MMTC stake sale; to decide Nalco,SAIL

Even as a crucial decision to divest 9.33 per cent holding in state-owned MMTC was deferred on Tuesday,an empowered group of ministers

Even as a crucial decision to divest 9.33 per cent holding in state-owned MMTC was deferred on Tuesday,an empowered group of ministers (EGoM) is scheduled to meet on Wednesday to finalise plans for stake sale in National Aluminum Company (Nalco).

The stake sale in MMTC was expected to raise about Rs 300 crore. But the low public float of the company at 0.67 per cent is leading to a very high valuation of the company and would find little interest from investors.

MMTC issue has been deferred for now. EGoM did not accept recommendations of merchant bankers on valuation issues, disinvestment secretary Ravi Mathur said after the meeting.

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The government plans to sell 31.31 crore shares amounting to 12.5 per cent stake through the offer for sale route in Nalco. Shares of Nalco lost 0.11 per cent to close at Rs 45.25 on the BSE.

A senior official added that the stake sale may take place this week,followed by a 10.82 per cent stake sale in steel maker SAIL next week.

Though the Cabinet Committee on Economic Affairs (CCEA) had approved the disinvestment of Nalco in September last year,it was pushed to the fourth quarter on concerns over valuation.

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