MSTC IPO (MSTC Limited IPO)

MSTC IPOMSTC Limited IPO description – MSTC Limited was incorporated in 1964 as a trading company to deal in the export of scrap. In subsequent years, the company has grown into a large diversified, multi-product services and trading company. It was a canalising agency for import of ferrous scrap until 1992 and established itself one of the leading e-commerce service providers in the country after de-canalisation. MSTC has also entered into the recycling business through a 50:50 joint venture with Mahindra Intertrade Limited (MIL) for setting up a shredding plant and collection centres across the country. There are three main business verticals of MSTC – (i) E-commerce, (ii) Trading, and (iii) Recycling.

MSTC has 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. It is one of the key players offering comprehensive range of services in e-procurement segment. With an experience of over 1,90,000 auctions, serving over 1,10,000 users as at 31 December 2018, it has emerged as the preferred service provider for various government and Government controlled entities, many of which are repeat customers. Many of MSTC’s clients are engaging with it on a nomination basis based on the latter’s strong credentials in e-commerce vertical. It has conducted 28,600 auctions/events during Fiscal 2018 and 30,500 auctions/event for nine months period ended 31 December 2018.

Promoters of MSTC – The President Of India
MSTC IPO details
Subscription Dates 13 – 20 March 2019
Price Band INR120 – 128 per share (Retail, employee discount – INR5.50 per share)
Fresh issue Nil
Offer For Sale 17,670,400 shares (INR212.04 – 226.18 crore)
Total IPO size 17,670,400 shares (INR212.04 – 226.18 crore)
Minimum bid (lot size) 90 shares
Face Value  INR10 per share
Retail Allocation 10%
Listing On NSE, BSE
MSTC’s financial performance (in INR crore)
FY2016 FY2017 FY2018 H1 FY2019
Total revenues 3,307.8 1,876.2 2,793.2 1,491.6
Total expenses 3,501.7 1,692.9 2,758.4 1,450.1
Profit after tax (265.8) 133.4 (9.8) (12.2)
Net margin (%) (8.0) 7.1 (0.4) (0.8)
More about MSTC
MSTC Contact Details

MSTC Limited 
225-C, A. J. C. Bose Road
Kolkata – 700 020, West Bengal

Phone: +91 033 22813088
Email: [email protected]
Website: www.mstcindia.co.in

Registrar of MSTC IPO

Alankit Assignments Limited
205-208, Anarkali Complex,
Jhandewalan Extension
New Delhi – 110 055

Phone: +91 11 4254 1234
Fax: +91 11 4154 3474
Email: [email protected]
Website: www.alankit.com

Valuation of MSTC (FY2018)

Earnings Per Share (EPS): (INR0.92)

Price/Earnings (PE ratio): NA

Return on Net Worth (RONW): (1.77%)

Net Asset Value (NAV): INR52.01 per share

MSTC IPO Subscription Details
Category Shares offered Subscription (no. of times)
Day 1 Day 2 Day 3 Day 4 Day 5 Day 6
QIB 13,200,000 0.00 0.00 0.79 0.78 0.85 1.12
NII 2,640,000 0.00 0.08 1.69 1.69 1.69 2.15
Retail 1,760,000 0.13 1.05 2.78 2.80 2.85 2.94
Employees 70,400 0.04 0.50 1.44 1.49 1.50 1.54
Total 17,670,400 0.01 0.46 1.12 1.12  1.17   1.43
MSTC Limited IPO Allotment Status

MSTC IPO allotment status is now available on Alankit Assignments’ website. Click on this link to get allotment status.

Listing Performance of MSTC Limited

IPO Opening Date: 13 March 2019

IPO Closing Date: 20 March 2019

Listing Date: 29 March 2019

Listing Price on NSE: INR115 per share (down 4.17% from IPO price of INR120)

Closing Price on NSE: INR113.8 per share (down 5.04% from IPO price of INR120)

8 COMMENTS

  1. MSTC is not consistent with profits, that’s why only 10% for small investors. But things will be better in future as MSTC is in the growing e-commerce field. The car shredding joint venture with Mahindra is also in sunrise industry.

  2. e-commerce business has grown at >40% yoy on that basis this is available at ~0.01x GMV!!!
    If analyst view that provisions are for prior periods and there will be limited provisions going forward are true, this is available at less than 10 time historical earnings!!!

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