The Tag line for Government Owned and run and listed MMTC is weepingly (sure this is a legit word!) ironic at “Touching Lives.Adding Value”
Wow !…considering a 98% Shareholder Wealth Erosion inside years !
MMTC could well be My ! My ! Take Care! ….Shareholders may well say “What’s Left to Take Care !”
MMTC quotes currently @ Rs 44 (FV Rs 1) and it’s 92000+ Shareholders surely continue sobbing and cursing !….Do you really expect the Government who owns the Company to really care !? their share is at Face Value Rs 1…sorry 50 paise as they too got the 1:1 Bonus in 2010
It’s such debacles and destruction in even PSUs like MMTC that swept away Retail Investors in hordes from our Equity Markets…It’s been a Crisis of Credibility and Confidence that continues to affect their return though it seems Memory is short as Mutual Funds Numbers are reflecting their return
….and is not Government supposed to protect you through Investor Protection & Safety and Awareness & Education Measures through Regulator SEBI and the Exchanges !?
I suppose in MMTC you required protection from the Government itself !
MMTC began the Crazy pre Lehman Year of 2007 at Rs 2200 levels on a FV of Rs 10 and raced away in just eleven months by November 2007 to Rs 57000 levels ….what was hailed as a glorious magical life changer for the few who were considered God’s creatures to have been bestowed the opportunity to buy in early in 2006 & 7 !
Share Price began correcting yet remaining at Rs 40000 levels at the beginning of 2010.In June 2010 the 1:1 Bonus and 10:1 Split dropped price to below Rs 2000 levels on the adjustment.
Whether one bought at 2007 High of Rs 57000 or even at Rs 40000 at the beginning of 2010 the erosion has been @ 98% after adjusting ex bonus and ex split cost to Rs 2850 and Rs 2000 per FV Rs 1 share respectively !…this inside three years as in August 2013 the Share Price sank below Rs 40….it’s being raising hopes only to belie in the past two years and is currently trying to stay over Rs 40
Government from earlier 90% now owns 89.93 % of the Equity of Rs 100 crs after selling 731238 shares at Rs 57 to 309 Employees in 2013/14 …unlucky Employees !…Oh ! LIC owns 4.81% of the Equity.
Consolidated FY 15 Topline is @ Rs 24000 crs (Trading in Precious Metals,Coal,Hydrocarbons and Fertlisers) with Bottomline at @ Rs 78 crs before adjusting for associate company loss of Rs 120 crs that takes the final bottomline into a loss of Rs 42 crs.The Consolidated Accounts are for MMTC and one wholly owned subsidiary,Seven JVs where it owns 26% of the Equity in six and 18% in one,and two associated companies of 1.1 mtpa Steel Company Neelachal Ispat Nigam Ltd (NINL ~holds 49.78% of the Equity) and Devona Thermal Power (owns 26% of the Equity).The Loss is from the Steel Company