India September 17(IM): Shares of State Trading Corporation of India (STC) plunged 19 percent while those of MMTC cracked 16 percent on the BSE on September 17 after media reports indicated the government may shut down these firms.
The government has decided to shut down STC while MMTC will be revamped, the reports added. The government owns a 90 percent stake in both firms.
For the June quarter of FY20, STC reported a consolidated loss of Rs 95 crore, while MMTC had reported doubling of its consolidated net profit to Rs 27.69 crore on the back of an increase in revenue from fertiliser and precious metals segments.
As per newspaper Mint, STC reported a loss for the fourth consecutive quarter. As of the fiscal year 2019, the total consolidated debt of the company stood at Rs 2,180.89 crore. As of March 2019, MMTC had a consolidated debt of Rs 961.49 crore.
Shares of STC were 16.58 percent down at Rs 111.45 while those of MMTC were 13.94 percent down at Rs 21.30 on BSE around 1200 hours.