The Indian Wire » Business » MSTC IPO receives 1.12 times subscription on final day of offering

MSTC IPO receives 1.12 times subscription on final day of offering

The Initial Public Offering (IPO) of shares by state run MSTC (Metal Scrap Trade Corporation Limited) witnessed an overall subscription of 1.12 times on the final day (Friday) of the offer.

The IPO received bids for 1,98,69,390 shares against the total issue size of 1,76,70,400. Till Thursday the subscription was 12%.

At the upper band size ranging from ₹121-128 per share, the issue size stands at ₹226 crore. At the higher end the miniratna is demanding for share valuation, 0.4% higher of its fiscal year 2018 sales.

Most of the brokerage have a positive outlook towards the issue but some of the have raised concerns regarding losses the company incurred during the previous fiscal years and  the legal proceedings pertaining to cancellation of export-import license.
“Considering the importance and positioning of its services among various government entities, favorable government policies for business growth, stable dividend payout and improvement in the financial performance, the issue seems to be attractively priced,” said Choice Broking.
The state owned company will offer a discount of ₹5.5 per unit share on the allotment price to retail investors.

MSTC Limited is state-owned e-commerce company headquartered in Kolkata, West Bengal. It is a Miniratna Category-I public sector undertaking (PSU), owned and operated under the aegis ministry of steel.

Earlier, in first week of March, SEBI (Securities and Exchange Board of India) gave an approval for IPO by way of offer for sale though which government is planning to disinvest its 25% stake in MSTC which will be bringing down its stake to 64.85% from the previous 89.25%.

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