MSTC Limited is a PSU (public sector unit) involved in the business trading of bulk raw material and e-commerce service provider to government and government-controlled entities. This is mainly a Kolkata based company. The content will reveal the MSTC IPO Review (Date, Price, DRHP).
MSTC IPO Review Issue Details :
- IPO Opens on – March 13, 2019.
- IPO Closes on – March 15, 2019.
- Face Value – Rs.10 Per Equity Share.
- Issue Price – Rs.121 – Rs.128 Per Equity Share.
- Issue Type – Book Built Issue IPO.
- Market Lot – 90 Shares.
- Minimum Order Quantity – 90 Shares.
- Issue Size – 17,670,400 Equity Shares of Rs.10 aggregating up to Rs.226.18 Cr.
- Retail Discount – Rs.5.50 per Equity Share.
- Employee Discount – Rs.5.50 per Equity Share.
- Listing Exchange – BSE, NSE.
- Draft Prospectus – Click Here.
Objectives of the issue of the Company :
- Carry out the disinvestment of Equity Shares by the Selling Shareholder in the company.
- Achieve the benefits of listing the Equity Shares on the Stock Exchanges the Company will not receive any proceeds from the Offer and all proceeds will go to the Selling Shareholder.
About The Company –
- MSTC Limited was incorporated in 1964.
- This company was previously a canalizing agency which is an enterprise created specifically to import and/or export of ferrous scrap until 1992.
- After de-canalisation MSTC Limited has established itself as an e-commerce service provider and a major player in trading of bulk raw material.
- The 3 main business verticals in this company are:
(ii) Trading of bulk raw material
(iii) Recycling through MMRPL.
- MSTC Limited was the company behind developing E-RaKAM portal, a digital initiative bringing together the farmers, FPOs, PSU, civil supplies and buyers on a single platform for selling and buying of agricultural products.
- This company has a country-wide footprint with 4 regional offices located in Delhi, Mumbai, Kolkata, and Chennai, also 13 branch offices in major cities of India and 3 site offices.
- MSTC Limited is making rapid progress in e-commerce sector to promote e-governance in all sectors of the economy.
- This company is offering the e-auction platform to a large number of Government departments and Government controlled entities.
- MSTC Limited has also entered into the recycling business through a 50:50 joint venture with MIL (Mahindra Intertrade Ltd) for setting up a shredding plant and collection centers across the country.
- This company has emerged as a pioneer in the e-auction segment catering to the Government sector, which is partnering with different Government agencies and ministries in conducting e-Auctions.
- MSTC Limited is one of the key players offering a comprehensive range of services in e-procurement segment.
Address: 225-C, A.J.C Bose Road, Kolkata – 700 020.
Telephone : (+91-33) 2290-0964,2287-7557 / 0568 / 9627
Fax : (+91-33) 2287 8547, 22874178
Email : [email protected]
The promoter of MSTC Limited :
- The Promoter of MSTC is President of India.
The Board of Directors of this company :
- Bam Bahadur Singh, aged 59 years is the Chairman and Managing Director of this Company.
- Subrata Sarkar, aged 48 years is the Finance Director, CFO and Whole Time Director of this Company.
- Bhanu Kumar, aged 52 years is the Commercial Director and Whole Time Director of this Company.
- Ruchika Chaudhry Govil, aged 53 years is a Government Nominee Director of the Company.
- Promodita, aged 52 years is a Government Nominee Director of this Company.
- Gangaram Aloria, aged 62 is an Independent Non-Official Director of this Company.
- Murali Vallabhan, aged 60 years is an Independent Non-Official Director of the Company.
- Rudramauni Shivayogeppa Yeli, aged 68 years is an Independent Non-Official Director of this Company.
- Parvati Parida, aged 52 is the Independent Non-Official Director of this Company.
- Aparna Chaturvedi, aged 60 years is an Independent Non-Official Director 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 secure manner of MSTC Limited.
- The competitive strength of this company is the 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 MSTC business.
- Robust, advanced and scalable technology platform.
- The experienced management team and a qualified and motivated workforce are the most important strength of this company.
Business strategies of this company :
- Diversifying their customer portfolio to increase private clientele in their 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 a recycling business.
Company Financials :
MSTC IPO Review :
This is the last stage of the content MSTC IPO Review. The attachment is the profit-loss statement of the company. It states as per the quarters of 2018, the PAT (profit after tax) was at 158.84. According to the annual report, March 18 had 64.81 million profit which was much lower than in previous years. In FY 2018 the company’s EPS (earnings per share) was 0.92 (basic and diluted). P/E ratio is not revealed here. RoNW (Return on Net Worth) was 1.77 and NAV/Share was 52.01. The data was taken from DRHP (draft red herring prospectus) Our analysis says MSTC IPO Review carries a NEGATIVE view. Investors may apply for the IPO but at their own risk.