Disinvestment of 5 percent paid up equity capital of ITDC and 1.02 percent of paid up capital of STC out of Government of India shareholding

The Cabinet Committee on Economic Affairs has approved the disinvestment of 5 percent paid-up equity capital in the India Tourism Development Corporation (ITDC) and 1.02 percent paid-up equity capital in the State Trading Corporation (STC), essentially to make these Central Public Sector Enterprises (CPSEs) compliant to the public shareholding norms under the Securities Contract (Regulation) Rules (SCRR). Under these rules every listed public sector company has to maintain a public shareholding of atleast 10 percent of the total paid up equity capital.

Background:

The ITDC came into existence in October 1966 and has been the prime mover in the progressive development, promotion and expansion of tourism in the country. The Corporation is running hotels and restaurants at various places for tourists, besides providing transport facilities. ITDC is a listed company with the Mumbai and Delhi Stock Exchanges. The issued and subscribed equity capital as on 31.03.2013 was Rs. 85.77 crore out of which the Government of India holds 92.11 percent of the equity.

The STC was incorporated in 1956 under the Companies Act, 1956 with the primary objective to trade with East European countries. It is a Schedule-`A` Mini-ratna listed CPSE in the Trading and Marketing Syndicate, under the administrative control of the Ministry of Commerce and Industry, Department of Commerce. STC is a listed company with the Mumbai Stock Exchange and the National Stock Exchange. The issued and subscribed equity capital as on 31.03.2012 was Rs. 60 crore out of which the Government of India holds 91.02 percent of the equity.

SC/SM

(Release ID :97133)