Bookbuilding IPO | ₹211 Cr | Listed at BSE, NSE | Wed, Mar 13, 2019 - Wed, Mar 20, 2019
MSTC IPO is a book build issue of ₹211.04 crores. The issue is entirely an offer for sale of 1.77 crore shares of ₹211.04 crore.
MSTC IPO bidding started from Mar 13, 2019 and ended on Mar 20, 2019. The allotment for MSTC IPO was finalized on Mar 25, 2019. The shares got listed on BSE, NSE on Mar 29, 2019.
MSTC IPO price band is set at ₹120 per share. The lot size for an application is 90. The minimum amount of investment required by an retail is ₹11,520 (90 shares) (based on upper price). The lot size investment for sNII is 19 lots (1,710 shares), amounting to ₹2,05,200, and for bNII, it is 93 lots (8,370 shares), amounting to ₹10,04,400.
The issue includes a reservation of up to 70,400 shares for employees offered at a discount of ₹5.50 to the issue price.
Equirus Capital Pvt.Ltd. is the book running lead manager and Alankit Assignments Ltd. is the registrar of the issue.
Refer to MSTC IPO RHP for detailed Information.
IPO Open
Wed, Mar 13, 2019
IPO Close
Wed, Mar 20, 2019
Issue Price
₹120 per share
Market Cap (Pre-IPO)
₹844.80 Cr
| IPO Date | 13 to 20 Mar, 2019 |
| Listed on | Fri, Mar 29, 2019 |
| Face Value | ₹10 per share |
| Price Band | ₹120 to ₹128 |
| Issue Price | ₹120 per share |
| Lot Size | 90 Shares |
| Sale Type | OFS only |
| Issue Type | Bookbuilding IPO |
| Listing At | BSE, NSE |
| Retail Discount | Rs 5.50 per share |
| Employee Discount | ₹5.50 |
| Total Issue Size | 1,76,70,400 shares (agg. up to ₹211 Cr) |
| Offer for Sale | 1,76,70,400 shares of ₹10 (agg. up to ₹211 Cr) |
| Share Holding Pre Issue | 7,04,00,000 shares |
| Share Holding Post Issue | 7,04,00,000 shares |
| BSE Script Code / NSE Symbol | 542597 / MSTCLTD |
| ISIN | INE255X01014 |
MSTC IPO comprises a total issue size of 1,76,70,400 shares. The net offer to the public is 1,76,00,000 shares, after excluding 70,400 shares under a preferential allotment. Of the Net offer 1,32,00,000 (75.00%) are allocated to QIB, 26,40,000 (15.00%) allocated to NII 17,60,000 (10.00%) allocated to RII.
| Investor Category | Shares Offered | % of Net Issue | % of Total Issue | Max Allottees |
|---|---|---|---|---|
| QIB Shares Offered | 1,32,00,000 | 75.00% | 74.70% | NA |
| NII (HNI) Shares Offered | 26,40,000 | 15.00% | 14.94% | NA |
| Retail Shares Offered | 17,60,000 | 10.00% | 9.96% | 19,555 |
| Preferential Reservations | ||||
| Employee Shares Offered | 70,400 | 0.40% | NA | |
| Total Shares Offered | 1,76,70,400 | 100.00% | 100.00% | |
Investors can bid for a minimum of 90 shares and in multiples thereof.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 90 | ₹10,800 |
| Retail (Max) | 18 | 1,620 | ₹1,94,400 |
| S-HNI (Min) | 19 | 1,710 | ₹2,05,200 |
| S-HNI (Max) | 92 | 8,280 | ₹9,93,600 |
| B-HNI (Min) | 93 | 8,370 | ₹10,04,400 |
| Application Category | Maximum Bidding Limits | Bidding at Cut-off Price Allowed |
|---|---|---|
| Only RII | Up to Rs 2 Lakhs | Yes |
| Only sNII | Rs 2 Lakhs to Rs 10 Lakhs | No |
| Only bNII | Rs 10 Lakhs to NII Reservation Portion | No |
| Only employee | Yes | |
| Employee + RII/NII |
|
Yes for Employee and RII/NII |
Incorporated in 1964, Kolkata based MSTC Limited is a public sector unit (PSU) involved in the trading of bulk raw material and e-commerce service provider to government and government-controlled entities.
The company was previously a canalizing agency (an enterprise created specifically to import and/or export of ferrous scrap) until 1992. After de-canalisation it has established itself as an e-commerce service provider and a major player in trading of bulk raw material.
In FY 2017, the company entered into the recycling business through a 50:50 joint venture with Mahindra Intertrade Ltd (a subsidiary of Mahindra Vehicle Manufacturers Ltd) by forming a new company Mahindra MSTC Recycling Pvt Ltd (MMRPL). This new firm is in the business of auto shredding, processing of end of life vehicles (ELVs), other white goods and products for the production of iron and non-iron shredded scrap
The 3 main business verticals in the company are:
(i) E-commerce,
(ii) Trading of bulk raw material
(iii) Recycling through MMRPL.
Since 2002, the company is offering e-auction platforms to many Government and Government controlled entities. As on December 31, 2018, MSTC has conducted over 1,90,000 auctions, serving over 1,10,000 users. It has conducted 28,600 auctions/events during 2018 and 30,500 auctions/event for nine months period ended December 31, 2018.
MSTC was the company behind developing E-RaKAM portal, a digital initiative bringing together the farmers, FPOs, PSU, civil supplies and buyers on a single platform for selling and buying of agricultural products.
MSTC has a country-wide footprint with 4 regional offices located in Delhi, Mumbai, Kolkata and Chennai, 13 branch offices in major cities of India and 3 site offices.
For Fiscals 2018, 2017 and 2016, the total revenue of the company was Rs 27,931.50 million, Rs 18,762.00 million, and Rs 33,078.00 million respectively.
The revenues from trading vertical are Rs 22,627.50 million, Rs 13,854.10 million and Rs 28,114.70 million for Fiscal 2018, 2017 and 2016 respectively.
The revenues from e-commerce vertical are Rs 1,900.60 million, Rs 1,618.80 million and Rs 1,277.50 million for Fiscal 2018, 2017 and 2016 respectively.
The EBITDA for Fiscals 2018, 2017 and 2016 was Rs 1,131.99 million, Rs 2,626.40 million and (Rs 853.50) million respectively.
Competitive strengths of the company:
1. One of the leading PSU providing e-commerce services.
2. Diversified customer portfolio
3. The active client base of government and government-controlled entities.
4. Preferred service provider for conducting e-auctions for government bodies
| Period Ended |
|---|
| Amount in ₹ Crore |
The MSTC IPO is subscribed 1.46 times on March 20, 2019 5:00:00 PM (Day 6). The public issue subscribed 2.95 times in the retail category, 1.13 times in the QIB category, and 2.15 times in the NII category. Check Day by Day Subscription Details (Live Status)
| Category | Subscription (times) | Shares Offered | Shares bid for |
|---|---|---|---|
| QIB | 1.13 | 1,32,00,000 | 1,48,60,710 |
| NII | 2.15 | 26,40,000 | 56,65,860 |
| Retail | 2.95 | 17,60,000 | 51,93,990 |
| Employee | 1.54 | 70,400 | 1,08,540 |
| Total | 1.46 | 1,76,70,400 | 2,58,29,100 |
| # | Issue Expenses | Est Amt (₹ Cr.) |
|---|---|---|
| 1 | Payment to BRLM (including underwriting commission, processing fees for SCSBs, Sponsor Bank, registered brokers, printing and stationery expenses) | 6.50 |
| 2 | Selling commission and brokerage for SCSBs, syndicate member, RTAs and CDPs | 0.17 |
| 3 | Others Other regulatory expenses Advertising and marketing for this Offer Fees payable to Legal Counsels Miscellaneous | 6.61 |
Lead Manager of the MSTC Limited issue, has informed the Exchange that the issue closure date has been extended to 20 March 2019. Post issue modification date has been revised to 22 March 2019.
The price band has been revised from Rs. 121 to Rs. 128 To Rs. 120 to Rs. 128 per share.
| Price Details | BSE | NSE |
|---|---|---|
| Final Issue Price | ₹120.00 | ₹120.00 |
| Open | ₹111.00 | ₹115.00 |
| Low | ₹110.05 | ₹111.00 |
| High | ₹116.55 | ₹120.00 |
| Last Trade | ₹114.20 | ₹113.95 |
Lead Manager Reports
MSTC IPO is a main-board IPO of 1,76,70,400 equity shares of the face value of ₹10 aggregating up to ₹211 Crores. The issue is priced at ₹120 per share. The minimum order quantity is 90.
The IPO opens on Wed, Mar 13, 2019, and closes on Wed, Mar 20, 2019.
Alankit Assignments Ltd. is the registrar for the IPO. The shares are proposed to be listed on BSE, NSE.
Zerodha customers can apply online in MSTC IPO using UPI as a payment gateway. Zerodha customers can apply in MSTC IPO by login into Zerodha Console (back office) and submitting an IPO application form.
Steps to apply in MSTC IPO through Zerodha
Visit Zerodha IPO Application Process Review for more detail.
The MSTC IPO opens on Wed, Mar 13, 2019 and closes on Wed, Mar 20, 2019.
MSTC IPO lot size is 90, and the minimum amount required for application is ₹10,800.
You can apply in MSTC IPO online using either UPI or ASBA as a payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO Application is offered by brokers who don't offer banking services. Read more detail about applying IPO online through Zerodha, Upstox, 5Paisa, Nuvama, HDFC Bank, and SBI Bank.
The finalization of Basis of Allotment for MSTC IPO will be done on Monday, March 25, 2019, and the allotted shares will be credited to your demat account by Thu, Mar 28, 2019. Check the MSTC IPO allotment status.
The MSTC IPO listing date is on Fri, Mar 29, 2019.
