State-owned Miniratna I MSTC got listed on BSE and NSE on 29th March 2019. The company got listed at a discount of 7.5% at Rs. 111 from its issue price of Rs. 120. Although the script pared some of the losses from the opening price, it closed at Rs. 114.20 on BSE down by 4.83%. On NSE, MSTC opened at Rs. 115 a piece down by 4% from its issue price and closed at Rs. 113.80 down by 5.04%.
MSTC opened for subscription of 13th March 2019 at a price band of Rs. 121-Rs. 128 per share with a view of raising Rs. 226 crores from the Initial Public Offering. The offer failed to sail the bids from the Institutional investors in the stipulated duration and extended the date for subscription till 20th March and by reducing the lower range of the price band to Rs. 120- Rs. 128.
The discount in price band and weak response from the investors is one of the reasons from the stock performance at the beginning. The Government of India had proposed to offload Rs. 226.18 crores or 25.25% via paid-up equity capital
Metal Scrap Trade Corporation Limited (MSTC) is a Public Sector Undertaking incorporated on 9th September 1964. Initially, MSTC was a canalizing agent for importing ferrous scrap till 1992. Later, after de-canalizing MSTC diversified into 3 segments of business.e. Trading, e-commerce, and Recycling. It is one of the largest e-commerce service provider across India.
MSTC is the second state-run PSU IPO that failed to garner investors interest at the time of subscription in 3 days duration following Garden Reach Shipbuilders & Engineers IPO that go listed in September 2018.
Equity Right team had avoid call on MSTC.