MSTC 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 IPO Review: Rags (scrap) to riches?
- MSTC IPO: Five things you should know
- Mini Ratna MSTC files draft prospectus
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Union Cabinet clears way for IPOs of 11 PSUs
MSTC Contact Details
MSTC LimitedÂ
225-C, A. J. C. Bose Road
Kolkata – 700 020, West Bengal
Phone:Â +91Â 033 22813088
Email: [email protected]
Website:Â 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 | 1.12Â | 1.17Â | Â 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)
What’s the price?
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.
Price will be in the range of 45-49
I want to purchase
Price needs to be kept below 50. Otherwise, it will flop.
Recycling has been a major source of feedstock for the steel industry etc
Ye to ane se pehle hi flop ho gaya! Greedy pricing by the government. PSU IPOs are no longer good.
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!!!
DONT BE IN HURRY TO BUY THIS SHARES AT PRESENT LEVELS. ONE HAS TO WATCH FOR TWO MORE QUARTERS>ENTER AT MUCH LOWER LEVELS FOR LONG TERM BENEFITS> OTHERWISW IN AND OUT METHOD AS PER YOUR RISK APPETITE CAPACITY>