Receives bids for 2.58 crore shares
The initial public offer (IPO) of MSTC received bids for 2.58 crore shares, data on the National Stock Exchange of India (NSE) website showed. The IPO was subscribed 1.46 times.
The IPO opened for subscription on 13 March 2019 and it closed on 20 March 2019. MSTC revised the lower end of its price band for the IPO, and extended the subscription till 20 March 2019. Price band was revised to Rs 120 to Rs 128 per share, from Rs 121 to Rs 128 set earlier.
The offer comprised offer for sale by the government of India of 70.40 lakh shares. The objects of the issue is to carry out the divestment program of the government of India apart from the benefits of listing the equity shares on the BSE and the NSE and to enhance its visibility and brand image and provide liquidity to its existing shareholders. Government of India will hold 74.9% of total paid up equity share capital of the company post listing.
For FY 2018, consolidated net sales were up 30% to Rs 2265.40 crore. Loss at PAT level for FY 2018 stood at Rs 6.48 crore. Even for the half year ended September 2018, the company has reported net loss of Rs 15.88 crore on revenues of Rs 1476.91 crore.
MSTC is a Mini Ratna Public Sector Undertaking (PSU) company. From an earlier business as a pure trading company, the company has grown into a large diversified, multi-product services and trading company. Currently, the three main business verticals in the company are E-commerce, Trading, and Recycling.
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