Preparing For An FPO?

Minerals and Metals Trading Corporation of India (MMTC), a public sector undertaking (PSU) which is the country's biggest trader of minerals, recently announced a split and bonus of its shares. This will be not be the first PSU that will go through this drill. Something similar had occurred at the National Mineral Development Corporation (NMDC) in the earlier part of 2008. The government was the majority shareholder in NMDC, holding around 98 per cent of its shares then. NMDC's shares then traded above Rs.10,000, a price level that made the stock quite illiquid. The stock was first split in the ratio of 10:1 and then bonus shares were also issued in the ratio of