Shares of MMTC zoomed 4 per cent in early trade on Friday as the state-run mineral and mining player said it has executed a share purchase agreement to sell its entire stake in Neelachal Ispat Nigam to Tata Steel Long Products Ltd.
The stake sale is part of the disinvestment drive of the government. In January, the government approved the sale of loss-making NINL to Tata Steel Long Products for Rs 12,100 crore.
MMTC’s counter climbed to a high of Rs 49.15 as against Rs 47.25 on the National Stock Exchange.
“…in continuation of our earlier disclosures regarding disinvestment of Neelachal Ispat Nigam Ltd, we wish to inform you that the company has executed the share purchase agreement and escrow agreement for the sale of its entire equity holding of the company in NINL to Tata Steel Long Products Limited, the successful bidder selected through the two-stage auction procedure, involving a competitive bidding process, run under the aegis of Department of Investment and Public Asset Management,” MMTC said in a BSE filing.