MMTC''s shareholders okay investment in SPV

State-run trading major MMTC Ltd today said its shareholders has approved through postal ballot investing up to Rs 22.80 crore in the special purpose vehicle (SPV) - Blue Water Iron Ore Terminal Ltd. The SPV is meant for setting up a project for development of iron ore berth at Paradip Port, MMTC said in a filing with the Bombay Stock Exchange.

The shareholders passed a special resolution through postal ballot for investment of a sum not exceeding Rs. 22.80 crore, to be funded out of internal accruals / reserves of MMTC, it said The investment would be for subscribing, acquiring equity shares of Blue Water Iron Ore Terminal, ensuring that the state-run firm''s equity stake in the said Company does not exceed 18 per cent of the paid up capital of the SPV, it said.

MMTC''s chairman and managing director Sanjiv Batra has declared the result of the postal ballot after a report was submitted by the scrutiniser. Manish Kumar Bansal, practising company secretary, who was earlier appointed as a scrutiniser for conducting the postal ballot, had submitted his report on August 21, it said.

Shares of the company closed at Rs 28,198, down 2.59 per cent from the previous close on the BSE..