MSTC makes tepid market debut, shares end 5% lower than issue price1 min read . Updated: 29 Mar 2019, 07:49 PM IST
- The 13-20 March MSTC IPO was subscribed 1.46 times at a revised price band of ₹120-128 per share
- The government offloaded 1.76 crore shares, or 25% of total paid-up equity, in the MSTC IPO
Mumbai: The government-run MSTC Ltd made a tepid stock market debut Friday with its shares closing at ₹113.80 apiece on the NSE, 5.1% lower than its issue price of ₹120. It was listed on the broader market at ₹115 per share.
The MSTC IPO opened for subscription on 13 March at a price band of ₹121-128 per share. The three-day initial share sale was extended to 20 March at a revised price of ₹120-128 per share, at which the IPO was subscribed 1.46 times. The government offloaded 1.76 crore shares, or 25% of total paid-up equity, in the MSTC IPO.
Incorporated in 1964 as a trading company to regulate the export of scrap, MSTC has grown into a large diversified, multi-product services and trading company. It was a canalizing agent for import of ferrous scrap until 1992. After de-canalization, the company has established itself as one of the major players in trading of bulk industrial raw material and one of the leading e-commerce service providers in the country.
The company entered the recycling business via a 50:50 joint venture with Mahindra Intertrade Ltd for setting up a shredding plant and collection centres across India. There are three main business verticals in the company: e-commerce, trading, and recycling through the joint venture company (Mahindra MSTC Recycling Pvt. Ltd).
Besides its traditional business of providing e-auction services for disposal of scrap and surplus materials, MSTC has developed various e-commerce modules for auction of coal and mineral blocks, sale of minerals, coal, lease and sale of properties, timbers and forest produces as well as procurement of goods and services.
MSTC has recently forayed into this sector and developed e-RaKAM portal for the benefit of the farmers to sale their produces online.
MSTC has targeted the niche agriculture and horticulture produces from North East and was able to sell ginger and pineapple from Nagaland, Manipur and Tripura. Similarly, other produces like litchi and fox nut from Bihar, onions from Nashik, PSS (Price Support Scheme) stocks of pulses, oil seeds, cereals from NAFED and HAFED are being sold successfully through the e-RaKAM portal.