Stocks

MSTC to raise Rs 226 crore at the upper band through IPO

Our Bureau | | Updated on: Mar 11, 2019
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MSTC Ltd, a State-owned e-commerce company based in Kolkata, is planning to raise Rs 226 crore at the upper price band through its Initial Public Offering (IPO) with the issue slated to open on Wednesday.

The company has fixed the price band of Rs 121–128, and intends to offload 1.76 crore shares through the initial stake sale, with the issue closing on March 15.

MSTC’s IPO comprises an Offer For Sale (OFS) of 1.76 crore shares, or 25 per cent of total paid-up equity, by the Government of India, acting through the Ministry of Steel, according to the Draft Red Herring Prospectus (DRHP) filed with the market regulator. At present, the government holds 89.85 per cent stake in MSTC. Following the divestment it will come down to 64.85 per cent. Equirus Capital is the book running lead manager to the issue.

A Mini Ratna company, under the Ministry of Steel, MSTC provides e-commerce-related services across diversified industry segments. It offers e-auctions and development of customised solutions, and is also engaged in bulk raw material trading.

The company had filed the DRHP with market regulator SEBI on January 31. Following the IPO, the firm proposes to be listed on both BSE and NSE.

Set up in 1964 as a trading company to regulate scrap exports, MSTC Ltd has now emerged as a large diversified, multi-product services and trading company. It has conducted more than 1.90 lakh auctions and is the preferred service provider for various government and government-controlled entities.

Published on March 11, 2019

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