IPO Update: MSTC Limited fixes price band for IPO

Government's e-auctions and procurement solutions company MSTC Limited has fixed the price band for its initial public offering (IPO) at Rs. 121 to 128 per equity share. 

The IPO is open for subscription from Wednesday, March 13 to Friday, March 15, 2019. Retail investors and employees of the company are eligible for Rs. 5.50 per share discount. 

The offer consists of upto 17,670,400 equity shares of face value of Rs. 10, including a reservation of upto 70,400 equity shares for employees. 

The mini-ratna public sector company is under the administrative control of the Ministry of Steel, Government of India. The government holds 89.85 per cent shareholding in the company through this offer for sale (OFS) government will raise approximately Rs. 900 crore and MSTC Limited will not receive any proceeds from the Offer. 

MSTC Limited was formerly known as Metal and Scrap Trading Corporation (MSTC) and acted as a canalising agency for import of scrap. Today, the company engages in trading of bulk industrial raw materials, recycling scrap for the steel industry and providing e-commerce related services for government agencies and ministries. The company has a wholly-owned subsidiary Ferro Scrap Nigam Limited (FSNL) and a joint venture company Mahindra MSTC Recycling Private Limited (MMRPL). For the September 2018 quarter, the company reported total revenue of Rs. 14,915.50 million.