State Trading Corporation, MMTC shares drop up to 20% amid reports of business closure

Shares of State Trading Corporation (STC) and MMTC on Tuesday tumbled up to 20 percent amid reports of closure of their business

Press Trust of India September 17, 2019 17:11:39 IST
State Trading Corporation, MMTC shares drop up to 20% amid reports of business closure
  • STC shares cracked 19.61 percent to close at Rs 107.40 on the BSE

  • MMTC also dropped 16.57 percent to close at Rs 20.65

  • The commerce ministry has decided to close down debt-ridden STC as well as Project and Equipment Corporation of India (PEC), and it will prepare a note to seek Cabinet approval for the same

New Delhi: Shares of State Trading Corporation (STC) and MMTC on Tuesday tumbled up to 20 percent amid reports of closure of their business.

STC shares cracked 19.61 percent to close at Rs 107.40 on the BSE. During the day, it tumbled 19.98 percent to Rs 106.90.

MMTC also dropped 16.57 percent to close at Rs 20.65. During the trade, it tanked 17.17 percent to Rs 20.50.

State Trading Corporation MMTC shares drop up to 20 amid reports of business closure

Representational image. AFP.

The commerce ministry has decided to close down debt-ridden STC as well as Project and Equipment Corporation of India (PEC), and it will prepare a note to seek Cabinet approval for the same, sources had said on Monday.

Meanwhile, Commerce and Industry Minister Piyush Goyal on Tuesday said all options are open with the ministry for closure or merger of three public sector undertakings - MMTC, STC and PEC.

According to STC's annual report for 2018-19, the company is facing "severe liquidity crisis" as all the lender banks have reported its account as NPA due to non-payment of interest on the banking limits availed by the company".

STC was set up in 1956 as a trading arm of the government to undertake trade with East European countries.

MMTC was created in 1963 as an independent entity on separation from STC primarily to deal in exports of minerals and ores and imports of non-ferrous metals.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Ministry of Commerce & Industry Launches Twitter Seva
News & Analysis

Ministry of Commerce & Industry Launches Twitter Seva

The Minister of State for Commerce & Industry Smt. Nirmala Sitharaman launched Twitter Seva as part of the startupindia program.

Eporters unlikely to get tax sops in Budget 2013
Economy

Eporters unlikely to get tax sops in Budget 2013

Exporters are demanding measures like adequate availability of credit at affordable rates, exemption from service tax on some services like branding and marketing of a product and a planned scheme for marketing of items.

 CCEA clears stake sale in STC, ITDC, aims around Rs 30 cr
Investing

CCEA clears stake sale in STC, ITDC, aims around Rs 30 cr

The Empowered Group of Ministers on disinvestment would decide on the floor price for stake sale in the two companies.<br /><br />