MSTC Limited’s IPO to open on Wednesday, March 13, 2019, with Price Band of Rs. 121 – Rs. 128 per Equity Share each of Face Value of Rs. 10 each

MSTC Limited’s IPO to open on Wednesday, March 13, 2019, with Price Band of Rs. 121 – Rs. 128 per Equity Share each of Face Value of Rs. 10 each

MSTC Limited’s IPO to open on Wednesday, March 13, 2019 with Price Band of Rs. 121 – Rs. 128 per Equity Share each of Face Value of Rs. 10 each
                               • The Public Offering of up to 17,670,400 Equity Shares
                               • Eligible Employees Reservation of up to 70,400 Equity Shares
                               • Net Public Offering of up to 17,600,000 Equity Share
                               • Minimum Bid lot is 90 equity shares and in multiples of 90 equity shares thereafter
                               • Issue opening date – Wednesday, March 13, 2019 and Issue closing date – Friday, March 15, 2019
                               • A discount equivalent to Rs. 5.50 per Equity Share on the Offer Price shall be offered to Retail                                                 Individual Bidders and Eligible Employee Bidders
                              • The Offer and the Net Offer will constitute 25.10% and 25.00% respectively, of the Post Offer                                                 paid-up Equity Share capital of the company.

CHENNAI, March 11, 2019: MSTC Limited (“Company”), will be launching its initial public offering (“IPO” or the “Offer”) which is scheduled to open on Wednesday, March 13, 2019 and close on Friday, March 15, 2019, with a price band of Rs. 121– Rs. 128 per Equity Share of face value of Rs. 10 each of the Company (the “Equity Shar e s”). A discount equivalent to Rs. 5.50 per Equity Share on the Offer Price shall be offered to Retail Individual Bidders and Eligible Employee Bidders.

The IPO comprises of up to 17,670,400 Equity Shares of the Company through an Offer for Sale by the President of India, acting through the Ministry of Steel, Government of India (the “Selling Shareholder”). The offer includes a reservation of up to 70,400 Equity Shares for Eligible Employees for allocation and allotment on a proport iona te basis (“Employee Reservation Portion”).This Offer is being made in terms of rule 19(2)(b) of the Securities Con tracts (Regulation) Rules, 1957, as amended (“SCRR”), read with Regulation 31 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended (“SEBI ICDR Regu lations”). The Offer is being made through Book Building Process in terms of Regulation 6(2) of the SEBI ICDR Regulations, wherein not less than 75% of the Net Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs”) (“QIB Portion”). 5% of the QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for alloc ation on a proportionate basis to all QIB Bidders, including Mutual Funds, subject to valid Bids being received at or above the Offer Price. However, if the aggregate demand from Mutual Funds is less than 5% of the QIB Port ion, the balance Equity Shares available for allocation in the Mutual Fund Portion will be added to the remaining QIB Portion for proportionate allocation to QIBs.

Further, not more than 15% of the Net Offer shall be available for allocation on a proportionate basis to Non-In stitutional Bidders and not more than 10% of the Net Offer shall be available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. Further, upto 70,400 additional Equity Shares has been reserved for allocation and Allotment on a prop or tionate basis to Eligible Employees bidding in the Employee Reservation Portion, subject to valid bids being rec eived from them at or above the Offer Price. All Bidders, shall mandatorily participate in the Offer through an Application Supported by Blocked Amount (“ASBA”) process by providing details of their respective bank accou nt in which Bid Amount will be blocked and Retail Individual Bidder and Eligible Employees shall also have an option to apply through UPI Mechanism. For details, please refer to the section titled “Offer Procedure” begi nning on page 286 of the Red Herring Prospectus.

The Company will not receive any proceeds from the Offer and all proceeds shall go to the Selling Shareholder i.e. President of India, acting through the Ministry of Steel, Government of India. The Offer and the Net Offer wi ll constitute 25.10% and 25.00% respectively, of the post Offer paid-up Equity Share capital of the Company.
Equirus Capital Private Limited is the Book Running Lead Manager (“BRLM”) to the Offer. The Equity Shares of MSTC Limited are proposed to be listed on BSE and the NSE. 

About MSTC Limited:
Incorporated in 1964 as a trading company to deal in the export of scrap, the Company has grown into a large diversified, multi-product services and trading Company. The Company was a canalizing agent for import of fe rrous scrap until 1992. After de-canalization, the Company has established itself as one of the leading e-com merce service providers in the country and also is one of the major player in trading of bulk raw material. There are three main business verticals in the Company which are namely, (i) E-commerce, (ii) Trading, and (iii) Rec ycling MSTC is one of the leading PSU entities engaged in providing e-commerce services to customers in a trans parent, fair and secured manner. MSTC has emerged as a pioneer in the e-auction segment catering to the Gove rnment sector, partnering with different Government agencies and ministries in conducting e-Auctions and is one of the key players offering comprehensive range of services in e-procurement segment. (Source D&B Re port)

With an experience of over 1,90,000 auctions, serving over 1,10 ,000 users as at December 31, 2018, the Com pany has emerged as the preferred service provider for various government and Government controlled entities which is demon st rated by the fact that the Company gets repeat business from the same client. Many of MSTC’s clients are en gaging them on a nomination basis based on our strong credentials in e-commerce vertical. The Co mpany has conducted 28,600 auctions/events during Fiscal 2018 and 30,500 auctions/event for nine months period ended December 31, 2018.

The Company entered into the recycling business through a 50:50 joint venture with Mahindra Intertrade Limited for setting up a shredding plant and collection centers across the country. The company has wide fo otprints in India with 4 regional offices, 13 branch offices and 3 site offices helping in servicing its existing cu stomers and acquiring new customers. As of February 28, 2019, the Company had 353 employees, including a large number of software engineers and information technology experts.

Disclaimer:

MSTC Limited is proposing, subject to receipt of requisite approvals, market conditions and other consider a tions, an initial public offering of its equity shares and has filed the Red Herring Prospectus with the Registrar of Companies. The Red Herring Prospectus is available on the website of SEBI at www.sebi.gov.in, BSE Limited at www.bseindia.com, National Stock Exchange of India Limited at www.nseindia.com and the website of the BRL M at www.equirus.com. Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, see “Risk Factors” beginning on page 25 of the Red Herring Prospectus. The offer and sale of the Equity Shares has not been and will not be registered under the United States Securities Act of 19 33, as amended (“Securities Act”) or any state securities laws in the United States and may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the regis tra tion requirements of the Securities Act and applicable state securities laws. Accordingly, the Equity Shares are only being offered and sold (i) in the United States only to persons reasonably believed to be “qualified insti tu tional buyers” (as defined in Rule 144A promulgated under the U.S. Securities Act, “Rule 144A”) in reliance on the exemption from registration requirements of the Securities Act provided by Rule 144A, and (ii) outside the United States in offshore transactions in reliance on Regulation S promulgated under the Securities Act. Pros pe ctive purchasers are hereby notified that the seller of the Equity Shares may be relying on the exemption from t e registration requirements of the Securities Act provided by Rule 144A. There will be no public offering of the Equity Shares in the United States.