MMTC OFS for Divestment of 9.33% Paid up Equity of the Government of India Shareholding Done; Issue Overscribed by 1.55 Times;
Government Expects to Realize Proceeds of Rs. 567.90 Crores.
The Minerals and Metal Trading Corporation (MMTC) OFS for divestment of 9.33% paid up equity of the Government of India shareholding in the MMTC was done today on both the stock exchanges i.e. BSE and NSE. The Issue was oversubscribed by 1.55 times. Based on the total valid bids received, at an indicative price of Rs.60.86 as against the floor price of Rs 60/- for the face value of Re one per share, the Government expects to realize proceeds of Rs. 567.90 crores. The OFS received participation from financial institutions, retail investors and some FIIs. The Investors category-wise participation was 65 per cent from Insurance Companies, 21 per cent from Banks and 14 per cent from retail investors.
The divestment was done to make the Company compliant to the public shareholding requirements under the Securities Contract Regulations (Rules) (SCRR).
The Merchant Bankers to the Issue were Avendus Capital, IDBI Capital and IDFC Ltd.