MMTC shines bright

MMTC seems to be shining bright today morning. The stock opened higher at Rs.43.40 and went on to Rs.44.95 and is currently around same levels, up almost 5%.

Yesterday, its Board of Directors, at its meeting, approved the proposal for sale of 10% of Indian Commodity Exchange  (ICEX) equity i.e. 5% each, to the two bidders who participated in the global tender. Currently, MMTC holds 26% in ICEX @ Rs. 10/- per share and this sale is subject to the approval by the Govt. and Forward Markets Commission (FMC).

ICEX was established in 2013 but has done no business since then. FMC has issued a show-cause notice to ICEX to scrap its registration due to it having done no business.

MMTC on the other hand has been looking to sell its stake for some time now as it does not want to infuse any more funds into the exchange.