CCEA approved Disinvestment of government stake in State Trading Corporation and ITDC
The Cabinet Committee on Economic Affairs (CCEA) on 11 July 2013 approved the disinvestment of government stake in State Trading Corporation and ITDC.
The Cabinet Committee on Economic Affairs (CCEA) on 11 July 2013 approved the disinvestment of government stake in State Trading Corporation (STC) and ITDC.
The disinvestment is supposed to bring around 30 crore Rupees to the exchequer. The disinvestment is required through Cabinet nod to divest 5 per cent stake in India Tourism Development Corporation (ITDC) and 1.02 per cent in STC through the Offer for Sale (OFS) route.
The government is expecting the sale of 5 per cent stake or 42.88 crore shares in ITDC to fetch 23.58 crore Rupees. The Government is also planning to acquire about 10 crore rupees through disinvestment of 1.02 per cent, or 6.13 crore shares, in STC.
It is important here to note that the government currently holds 92.11 per cent stake in ITDC and 91.02 per cent stake in STC. The stake is meant to help both the companies meet the minimum 10 per cent public holding norm of market regulator SEBI.
It is mandated for the government to bring down its stake in STC and ITDC to 90 per cent by 8 August2013. Shares of STC were trading 5.75 per cent lower at Rs 99.20 on the BSE in afternoon trade.