MMTC, STC stocks plunge over 15% on shutdown reports

MMTC, STC stocks plunge over 15% on shutdown reports

MMTC, STC stocks plunge over 15% on shutdown reports

Shares of Metals and Minerals Trading Corporation (MMTC) and State Trading Corporation of India (STC) turned bearish on Tuesday after media reports indicated the government was planning to shut these state-owned trading firms.

While the shares of State Trading Corporation of India (STC) declined as much as 18.82% to the day’s low of Rs 108.45, Metals and Minerals Trading Corporation (MMTC) stock price fell 16.36% to its intraday low of Rs 20.7 on the BSE.

The STC stock opened in the red and was down 14% against the previous closing price of Rs 133.60. By the afternoon session, the STC stock was down 18.82%. The stock has fallen with a trend reversal today, after 5 days of consecutive gain.

Similarly, the stock price of MMTC opened marginally lower at Rs 22.80, down 0.3%, against the last closing price of Rs 24.75 and later, declined 16.36% to the day’s low.

The government has reportedly decided to shut down State Trading Corporation of India Ltd along with Project and Equipment Corp of India Ltd. The report also suggested that Metals and Minerals Trading Corporation will be revamped as well.

STC, that has reported a loss for the four consecutive quarters, has a total consolidated debt of the company valued at Rs 2,180.89 crore in FY19. Whereas MMTC had a consolidated debt of Rs 961.49 crore as of March 2019.

For the June quarter of FY20, STC had recorded a consolidated loss of Rs 95 crore, while MMTC during the same quarter doubled its consolidated net profit to Rs 27.69 crore.

Earlier in March, Syndicate Bank had initiated insolvency proceedings against STC for an amount of Rs. 625.32 crore.

[“source=businesstoday”]