InvestorQ : Is MSTC IPO worth subscribing?
Arti Chavan made post

Is MSTC IPO worth subscribing?

Answer
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Anu Biswas answered.
1 year ago


Government’s Mini Ratna - MSTC IPO floating its shares to the public and is out for subscription from today, that is, 13 March to 15 March 2019. The government has decided to offload its 25% of total paid-up equity that neatly sums up to 1.76 crores. The price range is between Rs 121–128 per share with face value of Rs 10 each. The minimum bid lot for is 90 and multiples of 90 thereafter. This means that a subscriber has to buy
minimum of 90 shares in one go at the price of Rs 121–128 per share.

MSTC is basically an e-commerce, trading and recycling company. It offers e-auction/e-sale, e-procurement services and development of customized software. With respect to trading segment, the company provides industrial raw materials like low-ash metallurgical coke, HR coil, naphtha, crude oil, coking coal, steam coal and line pipe to their steel, oil and gas, power sectors clients. It will list on both, BSE and the NSE so indicating price transparency and liquidity in the secondary market. MSTC developed E-RaKAM portal that helped farmers, PSU, civil supplies, and buyers to buy and sell agricultural product from a single platform.

As per chittorgarh.com, the revenue of the company are as follow :

Revenue

2016

2017

2018 (Rs. in million)

From Trading

28114.8

13854.1

22627.5

From e-commerce

1277.5

1618.8

1900.6

Total Company Revenue

33078

18762

27931.5

The IPO is worth subscribing as per my view because the company has diversified vertical plus it one of the leading e-commerce service provider to PSU. This is just my perception of the MSTC IPO and not investment advice.


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Ira Shah answered.
1 year ago


Kolkata based Indian state-run e-commerce firm MSTC Limited launched its Initial Public Offering (IPO) on 13 March to 15 March 2019. 25% of total paid-up equity that sums up to around 1.76 crores was flooded at the price range of Rs 121–128 per. The Stock got listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on today, 29 March 2019. However, it listed at Rs. 111 at a discount of 7.5% to its issue price of Rs 120. Although MSTC IPO received bids for 2,58,29,100 shares against the total issue size of 1,76, 70,400, the listing does not have the same level of optimism.