The stock of MMTC Ltd skyrocketed 20% hitting the upper circuit as the state-owned metals and mining PSU and India's largest exporter has been mulling to issue bonus shares which is subject to the approval in its board meeting scheduled on 19 March 2018.
Shares of MMTC Ltd skyrocketed 20% hitting the upper circuit as the state-owned metals and mining PSU and India’s largest exporter has been mulling to issue bonus shares which is subject to the approval in its board meeting scheduled on 19 March 2018. “In compliance with the guidelines/directives of Department of Public Asset and Investment Management, Govt of India, the Board of Directors of MMTC Ltd shall consider and approve the proposal for issue of Bonus Shares subject to consent of the President of India vide Article 46 of the AOA of the company, in its meeting to be held on 19th March 2018,” MMTC Ltd said in a regulatory filing. Following the announcement, a huge spurt was seen in the shares of MMTC steering the stock as the lead gainers among group ‘A’ stocks of BSE.
The stock of MMTC Ltd spiked as high as 20% to a day’s high of 62.1 on NSE on Thursday. A huge trading volume has been witnessed in the shares of MMTC Ltd, as at 12:46 am, more than 1.37 crore shares exchanged hands on both NSE and BSE with about 1.15 crore shares on NSE alone. As the issuance of bonus shares is a price-sensitive corporate action, sue to which the state-run metals and mining firm MMTC Ltd has approved the closure of the trading window for the company with immediate effect till 21 March 2018 i.e. from 14th March 2018 to 21st March 2018 (both days inclusive).
Earlier in February last month, MMTC Ltd posted a net profit of Rs 6.26 crore for the October-December period of the financial year 2017-2018, on the account of lower income as against a net profit of Rs 74.43 crore in the corresponding period a year ago. MMTC’s total income was at Rs 3,387.36 crore for the quarter ended 31 December 2017 vs Rs Rs 4,961.54 crore in the same previous fiscal.