Cabinet approves sale of stake in ITDC, STC

The union cabinet today approved sale of 5 per cent paid-up equity capital of state-run India Tourism Development Corp Ltd (ITDC) and 1.02 per cent of the paid-up capital of State Trading Corp of India Ltd (STC), in a planned divestment of government shareholding.

The stake sale would help these central public sector enterprises (CPSEs) comply with the public shareholding norms under the Securities Contract (Regulation) Rules (SCRR), a government release said.

Under the rules framed by the Securities and Exchange Board of India (SEBI), every listed public sector company has to maintain a public shareholding of at least 10 per cent of the total paid-up equity capital.

ITDC, set up in October 1966, has been the prime mover in the progressive development, promotion and expansion of tourism in the country.

The corporation runs hotels and restaurants at various places for tourists, besides providing transport facilities.

ITDC, a listed company with the Mumbai and Delhi stock exchanges, had issued and subscribed equity capital of Rs85.77 crore as of 31 March 2013, out of which the government held 92.11 per cent.

STC was incorporated in 1956 under the Companies Act, 1956, with the primary objective of trading with East European countries. A Schedule-'A' Mini-ratna listed CPSE in the trading and marketing syndicate, STC is under the administrative control of the ministry of commerce and industry.

A listed company with the Mumbai Stock Exchange and the National Stock Exchange, STC had issued and subscribed equity capital of Rs60 crore as of 31 March 2012, out of which the government held 91.02 per cent.