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Our Bureau State-owned MSTC has filed a draft red herring prospectus with the Securities and Exchange Board of India for an initial public offering.
Offer-for-sale route
The company, which is engaged in e-commerce and trading activities, plans to go public through the offer-for-sale (OFS) route by the government, as per the information provided in the draft prospectus.
The IPO will see sale of 1.76 crore shares, amounting to 25 per cent of the post-offer paid-up equity share capital of the company by the President of India, acting through the Union Ministry of Steel.
A part of the public offering has been reserved for employees of the company.
Currently, the government holds 89.85 per cent stake in MSTC. The divestment would bring down the government holding to 64.85 per cent.
Since this is an OFS, MSTC will not receive any proceeds from the offer and all the proceeds shall go to the selling shareholder, the company said in the draft prospectus.
Equirus Capital is the sole book-running lead manager to this offer and Alankit Assignments is the registrar.
The equity shares of the company are proposed to be listed on the BSE and the NSE.
MSTC’s total revenue increased to ₹2,793 crore in FY18 compared to ₹1,876 crore in the same period last year. As on March 31, 2018, the company posted net loss of ₹6.5 crore, compared to net profit of ₹14 crore in the same period last year. Its net worth stood at ₹366 crore.
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