The government’s e-auctions and procurement solutions company MSTC is planning to raise Rs 226 crore at the upper price band through its IPO with the issue planned to open on Wednesday. The Kolkata-based firm has fixed the price band for its IPO at Rs 121 to Rs 128 per equity share.
The company will be selling 1.76 crore equity shares, or 25% of total paid-up equity, by the government of India, acting through the ministry of steel, through the initial stake sale.
The minimum bid lot is of 90 equity shares and is in the multiples of 90 equity shares thereafter. A discount equivalent to `5.50 per equity share on the offer price shall be offered to retail individual bidders and eligible employee bidders. At present, the government holds 89.85% stake in MSTC. Following the divestment, it will come down to 64.85%. Equirus Capital is the book-running lead manager to the issue.
Incorporated in 1964 as a trading company to deal in the export of scrap, the company has grown into a diversified, multi-product services and trading company.