MSTC Limited IPO – Review, Allotment, Subscription, GMP & DRHP

Let’s have a detailed review of the company and analytics of the MSTC Limited IPO release date, MSTC IPO offer price, subscription, MSTC IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.

MSTC Limited is one of the leading PSU entity engaged in providing e-commerce related services across diversified industry segment offering e-auction/e-sale, e-procurement services and development of customized software/solutions.

They have emerged as a pioneer in the e-auction segment catering to the Government sector, partnering with different Government agencies and ministries in conducting e-Auctions. MSTC Limited IPO comprises public Issue of  17,670,400 Equity Shares of Rs.10 each at a price of Rs. 121 – Rs.128 per Equity Share aggregating to Rs.226.18 Cr.


MSTC Limited IPO Review & Ratings

IPO Ratings & Review
Criteria Ratings
Industry Sentiments 7.5/10
Industry Ranking 7.8/10
Company Background 7.9/10
Company Reputation 7.9/10
Competitive Edge 7.7/10
Financial Statements 7.1/10
Popularity Index 7.4/10
Promoters Reputation 7.7/10
Retail Appetite 7.2/10
Top Brokers Review 7.2/10
Overall Ratings 7.3/10
Star Ratings ★★★★☆

Summary of MSTC Limited IPO

MSTC Limited IPOMSTC Limited is one of the leading PSU entity engaged in providing e-commerce related services across diversified industry segment offering e-auction/e-sale, e-procurement services and development of customized software/solutions.

They have emerged as a pioneer in the e-auction segment catering to the Government sector, partnering with different Government agencies and ministries in conducting e-Auctions.

From FY 2013-14 to FY 2017-2018, as per the Restated Financial Statements,

  • For the half year period ended on September 30, 2018, Fiscal 2018, Fiscal 2017 and Fiscal 2016, revenue from government and Government-controlled entities contributed Rs. 908.85 million, Rs. 1641.84 million, Rs. 1505.66 million and Rs. 1205.41 million respectively to they total revenue from e-commerce vertical.
  • The net asset value per Equity Share was Rs. 46.58 and Rs.52.01 as of half year period ended on September 30, 2018 and March 31, 2018, respectively, as per the Restated Consolidated Financial Statements.
  • The net worth, including non-controlling interests, as of Sept 30, 2018 and March 31, 2018 was Rs. 3,279.18 million, and Rs. 3,661.59 million, respectively.

The Promoters of this company are President of India, acting through the MoS. The lead manager to the issue are Equirus Capital Private Limited and the Registrar to this issue is Alankit Assignments Limited.


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MSTC Limited IPO Date

The opening and the closing date of MSTC Limited IPO is Mar 13, 2019 – Mar 20, 2019.


MSTC Limited IPO Subscription

Day / Date QIB NII RII Employee Total Subscription
1st Day – Mar 13 0.00x 0.01x 0.44x 0.13x 0.05x
2nd Day – Mar 14 0.00x 0.09x 1.06x 0.53x 0.13x
3rd Day – Mar 15 0.79x 1.69x 2.78x 1.44x 1.12x
4th Day – Mar 18 0.85x 1.69x  2.80x  1.47x  1.17x
5th Day – Mar 19 0.85x 1.69x  2.85x  1.50x  1.18x 
6th Day – Mar 20 0.89x 1.73x  2.88x 1.56x    1.25x
Shares Offered or Net Issue 13,200,000 2,640,000 1,760,000 70,400 17,670,400

The shares subscribed by the public will be updated here. Click below to check the Live Subscription:


MSTC Limited IPO Allotment Status

Here, you can find the Allotment Status of this IPO. 

Basis of Allotment Finalization 20-Mar-19
Refunds Initiation 22-Mar-19
Credit of Shares to Demat Account 25-Mar-19
Share Listing Date 26-Mar-19

MSTC Limited IPO Price Band

The face value of each share is Rs.10 & price band is Rs.121 to Rs.128 per equity share.


MSTC Limited IPO Equity Share Offering

Initial public offer of up to 17,670,400 Equity Shares of Rs. 10 each, at an Offer Price of Rs.121 – Rs.128 per Equity Share for cash aggregating up to Rs.226.18 Cr.


MSTC Limited – Company Overview

MSTC Limited was Incorporated in 1964 as a trading company to regulate the export of scrap, they have grown into a large diversified, multi-product services and trading Company. They were a canalising agency for import of ferrous scrap until 1992. After de-canalisation, their Company has established itself as one of the leading e-commerce service providers in the country and also is one of the major player in trading of bulk raw material. They have also entered into the re-cycling business through a 50:50 joint venture with MIL for setting up a shredding plant and collection centres across the country.

The Company is promoted by President of India, acting through the MoS and are the guiding force behind the growth and strategic decisions of the Company.

Competitive Strengths of MSTC Limited:

  • One of the leading PSU entity engaged in providing e-commerce services to customers in a most transparent, fair and secured manner;
  •  Ability to create a virtual marketplace for any physical commercial activity thereby creating value for all the stakeholders;
  • First mover advantage on account of domain expertise in providing e-commerce services thereby helping to boost they business;
  • Robust, advanced and scalable technology platform; and
  • Experienced management team and qualified and motivated workforce.

Business strategies of MSTC Limited:

  • Diversifying they customer portfolio to increase private clientele in they e-commerce vertical.
  • Continue to focus on and further develop e-commerce business by capturing the untapped markets
  • Foray into e-commerce backed trading for better price discovery and transparent transactions
  • Diversify into B2C segment.
  • Develop the recycling business.

MSTC Limited – Financial Statements

A quick look into the past financial performance of the company to understand its performance of business and evaluate the growth prospectus:

Financial Summary:

On the basis of Standalone statement:-

Amount (in INR & millions)
30-Sept-18 31-Mar-18 31-Mar-17 31-Mar-16
Total Assets 42,566.28 47,378.56 45,998.14 41,621.75
Total Revenue 14,915.50 27,931.50 18,762.00 33,078.00
Total Expense 14,500.95 27,583.91 16,928.90 35,017.40
Profit After Tax (158.84) (64.81) 1,391.50 (2,471.00)

Earnings per Equity Share (in Millions)

30-Sept-18 31-Mar-18 31-Mar-17 31-Mar-16
Basic & Diluted (2.26) (0.92) 19.77 (35.10)

From the above statements, one could find that the MSTC Limited Limited may perform well.


MSTC Limited IPO – Promoters

The Promoters of this company are:

  • President of India, acting through the MoS

List of Related Parties (Key Managerial Personnel)

  • Bam Bahadur Singh, Chairman and Managing Director
  • Subrata Sarkar, Director (Finance) and CFO, Whole Time Director
  • Bhanu Kumar, Director (Commercial), Whole Time Director
  • Ajay Kumar Rai, Company Secretary and Compliance Officer

Interest in promotion of the Company

Company is currently promoted by the Promoters in order to carry on its present business. Promoters are interested in the Company to the extent of their shareholding and directorship of the Individual Promoter in the Company and the dividend declared, if any, by the Company. The Promoters are interested in the transactions entered into the Company and the Promoter Group.

Property Interest

The promoters along with the promoter group will continue to hold collectively some percentage of the equity share capital of the company. As a result of the same, they will be able to exercise significant influence over the control of the outcome of the matter that requires approval of the majority shareholders vote.

Interest in Intellectual Rights of the Company

Promoters has not shown any interest in acquiring the intellectual rights of the company.


MSTC Limited IPO Offer Details or Issue Details

Particulars  No. Of Equity Shares
 Equity Shares Offered  Up to [●] Equity Shares aggregating up to Rs. [●] million
 Of which:
Employee Reservation Portion Up to [●] Equity Shares aggregating up to Rs. [●] million
Net Offer Up to 17,600,000 Equity Shares 
 Of which:
QIB Portion Not less than 13,200,000 Equity Shares
 Of which:
Anchor Investor Portion Up to 7,920,000 Equity Shares
Net QIB Portion (assuming Anchor
Investor Portion is fully subscribed)
5,280,000 Equity Shares
 Of which: [●] Equity Shares of Face Value of Rs. 10/- each 
Mutual Fund Portion 264,000 Equity Shares
Balance for all QIBs including Mutual
Funds
5,016,000 Equity Shares
Non-Institutional Portion Not more than 2,640,000 Equity Shares
Retail Portion Not more than 1,760,000 Equity Shares
Equity Shares outstanding prior to and post
completion of this Offer
70,400,000 Equity Shares

MSTC Limited IPO Issue Object

These are the IPO Issue Objects of the company

  • Funding the Working Capital requirements of the Company:
  •  Repayment/ pre-payment of certain unsecured loans availed from banks and financial institutions by the company; and
  •  General Corporate Purposes

 

MSTC Limited IPO – Basis of the Offer Price

The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.

Qualitative factors are:

  • One of the leading PSU entity engaged in providing e-commerce services to customers in a most transparent, fair and secured manner;
  •  Ability to create a virtual marketplace for any physical commercial activity thereby creating value for all the stakeholders;
  • First mover advantage on account of domain expertise in providing e-commerce services thereby helping to boost they business;
  • Robust, advanced and scalable technology platform; and
  • Experienced management team and qualified and motivated workforce.

The relevant quantitative factors are:

Basic & Diluted EPS RONW (%) NAV (Rs.)
31-Mar-16 (35.10) (78.53)
31-Mar-17 19.77 34.27
31-Mar-18 (0.92) (1.77)
52.01
  • Price to Earnings (P/E) ratio in relation to Issue Price of [●] per Equity Share of face value of Rs. 10 each
Particulars P/E ratio
Highest [●]
Average [●]
Lowest [●]
  • Competitive Peers:

As on the date of this Draft Red Herring Prospectus, there are no listed companies in India which are engaged in the same line of business as the Company and comparable to they scale of operations, hence comparison with industry peers are not applicable.


MSTC Limited IPO Lead Managers

Lead Managers
Equirus Capital Private Limited
12th Floor, C Wing, Marathon Futurex, N. M. Joshi Marg, Lower Parel,
Mumbai 400 013, Maharashtra, India
Tel.: +91-22-4332-0600
Email:
Investor Grievance E-mail:
Website: www.equirus.com
Contact Person: Ankesh Jain/Gaurav Phadke
SEBI Registration No.: INM000011286

MSTC Limited IPO Registrar to offer

Registrar to the Offer
Alankit Assignments Limited
205-208, Anarkali Complex, Jhandewalan
Extension, New Delhi -110 055
Tel: +91-11-4254-1951/+91-22-4348-1200
E-mail: /
Investor Grievance E-mail:
Website: www.alankit.com
Contact Person: S. Arunraj/Sachin Gupta
SEBI Registration No.: INR00000253

Other Details:

  • Statutory Auditor – D.K Chhajer & Co., Chartered Accountants
  • Peer Review Auditor – D.K Chhajer & Co., Chartered Accountants
  • Bankers to the Company – State Bank of India, YES Bank Limited, Punjab National Bank, Union Bank of India, Central Bank of India, Axis Bank

MSTC Limited IPO Review by Top 10 Stock Brokers

Top Stock Brokers Review Company Reputation Competitive Edge Financial Statement Popularity Index Promoters Reputation
Angel Broking 7.5/10 7.4/10 8.5/10 8.1/10 7.1/10
Sharekhan 7.2/10 7.1/10 8.6/10 8.1/10 7.2/10
Kotak Securities 7.3/10 7.5/10 8.4/10 8.1/10 7.3/10
ICICI Direct 7.3/10 7.3/10 8.7/10 8.1/10 7.1/10
IIFL 7.5/10 7.2/10 8.8/10 8.0/10 7.1/10
Edelweiss 7.5/10 7.4/10 8.4/10 8.3/10 7.2/10
Zerodha 7.4/10 7.1/10 8.5/10 8.1/10 7.0/10
5Paisa 7.1/10 7.1/10 8.4/10 8.1/10 7.1/10
Karvy 7.4/10 7.3/10 8.2/10 8.1/10 7.1/10
Motilal Oswal 7.1/10 7.1/10 8.6/10 8.3/10 7.2/10

MSTC Limited IPO Grey Market Premium

The MSTC Limited IPO Grey Market Premium price is Rs 30- Rs 40, the Kostak rate is Rs X and the Subject to Sauda is X. 


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MSTC Limited IPO News

News 1 – IPO ISSUE OPENS SOON [Download Prospectus]


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