State-run MMTC shines in the wake of merger with STC

Commerce and Industry Minister Suresh Prabhu informed that a merger of state-run trading firms Metals & Minerals Trading Corporation of India (MMTC) and State Trading Corporation (STC) is under process.

This merger is likely to help state-run sick company STC. STC is reporting losses from the fiscal year 2011 till date.

Government entity PEC has about 90 per cent stake in MMTC and STC. The merger of MMTC and STC would result in synergy of operations.

In response to this development, the stock of MMTC surge as much as 10 per cent to touch day's high of Rs. 60.05 per share from previous close of Rs. 54. However, later it cooled down and settled for the day at Rs. 58.8 per share up by 7.7 per cent. On the other hand, stock of STC opened gap up at Rs. 141 per share and touched day's high of Rs. 142 per share. The stock of STC closed at Rs. 137.2 per share, up by 1.3 per cent.