PTI reported that disinvestment in MMTC may not be possible in the immediate future, as stock market conditions are not appropriate for fixing the price band of the thinly traded shares of the company.

A top commerce ministry official said that "We are waiting for the right time. The current market condition is not good for disinvestment.”

He added that “As MMTC's shares are very thinly traded in the market, it is very difficult to fix the price band.”

The official said that while its shares are thinly traded in the market, the floating stock is so limited that it does not reflect the true value of the company.

The central government, which holds 99.33% stake in the trading firm, has plans to divest 10% of its shares.

MMTC has received EGM approval for splitting each share of face value of INR 10 into 10 scrips of INR 1 each and issuing one to one bonus shares.

In the Budget 2011, the government had envisaged to raise INR 40,000 crore from disinvestment of its shares in the public sector enterprises, but has managed to mop up only INR 1,145 crore till date amid volatile capital market situation.

(Sourced from PTI)