In another instance of a PSU issues biting the dust, MSTC shares are trading much below the issue price on its listing day.
In another instance of a PSU issues biting the dust, MSTC shares are trading much below the issue price on its listing day. MSTC shares are trading at Rs 115, 4% below the issue price at Rs 120. Notably, the share made their debut this morning at Rs 111 on BSE, implying a 7.5% discount to issue price of Rs 120. Notably, several PSU new issues have left investors with poor returns in the recent past. PSU issues including IRCON International, Garden Reach, Coal India, NALCO, HUDCO, RCFL, National Fertilizers are all trading below their issue prices.
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The development comes even as Rail Vikas Nigam, another PSU opened for subscription today. The Rs 481 crore -IPO of RVNL is offering 25.34 crore shares at a price band of Rs 17-19 per share. The issue is an offer-for-sale or OFS which will close on April 3. Post this IPO, the government’s stake will reduce to 88% after diluting its stake of 12.2% in the rail PSU.
Earlier, state-run firm MSTC which provides auctions and procurement solutions, had to be extended as it failed to sail through. The initial share sale of state-owned MSTC had been extended till March 20 and the price band was also lowered. The price band of the offer, which was revised to Rs 120-128 from Rs 121-128 per share. The issue received bids for a total of 1.76 crore out as against a total size of 1.76 crore shares. MSTC, a Kolkata-based firm, was incorporated in 1964 as a trading company to deal in the export of scrap. There are three main business verticals in the company — e-commerce, trading and recycling.