Government-owned trading and E-commerce company MSTC was subscribed 1.46 times up to Rs. 226 crores and bids for 2.58 crores shares after extending the subscription date till 20th March 2019. The company revised its price band from 121-128 per share to 120-128 a piece. At the eleventh hour, the IPO sailed through when the institutional investor made its bid.
Initially, the issue was scheduled to close on 15th March 2019, but they extended it till 20th March 2019 as the company failed to get sufficient bids during the stipulated time.
The portion reserved for Qualified Institutional Buyer (QIB) was required to be fully subscribed in the IPO. It had inched up from 79 per cent to 85 per cent until the 5th day of the IPO. The QIB portion finally got fully subscribed on the 6th day with 125 per cent subscription.
There was not a single bid from QIB for the initial 2 days of the IPO. On the 3rd day, the major bids came from the insurance companies.
The IPO came at that time when Indian investors are circumspect due to the general elections that are to be conducted in April 2019.
Read our MSTC IPO research note here: