About the Company:
MSTC Ltd (Incorporated in 1964) is a trading company to deal in the export of scrap, Over the years Company has grown into a large diversified, multi-product services and trading Company.
Company has established itself as one of the leading e-commerce service providers in the country and also is one of the major player in trading of bulk raw material.
Company is offering e-auction platform to a large number of Government departments and Government controlled entities.
Company 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 centres across the country.
Company’s Main Business Verticals are (i) E-commerce, (ii) Trading, and (iii) Recycling through MMRPL (Mahindra MSTC Recycling Private Ltd).
E-commerce / e-Auction Business.
Company is one of the leading PSU entities engaged in providing e-commerce related services across diversified industry segment offering e-auction/e-sale, e- procurement services and development of customized software/solutions.
Company has emerged as a pioneer in the e-auction segment catering to the Government sector, partnering with different Government agencies and ministries in conducting e-Auctions.
With an experience of over 1,90,000 auctions, serving over 1,10,000 users as at December 31, 2018, Company has emerged as the preferred service provider for various government and Government controlled entities.
Company has conducted e-auction for sale of scraps, old plant & machineries, minerals, agricultural produce, coal and non-coal mine blocks, land parcels, tea, gorgon nut, tendu leaves, timbers and other forest produce, etc.
Company has also developed an EXIM (Export–Import Bank of India) portal for one of the leading petroleum companies to provide a transparent online platform for their exporting and importing activities.
Trading Business.
Company has established itself as one of the established players in trading bulk raw material. MSTC is mainly catering to customers across steel, oil and gas, power sectors in private and public sector.
The Trading division is engaged in import as well as domestic sourcing of bulk industrial raw material for actual users as well as traders.
This division looks after sourcing, purchase and sale of industrial raw materials like low ash metallurgical coke, HR coil, naptha, crude oil, coking coal, steam coal, line pipes etc. on behalf of our customers.
Recycling Business.
Company has forayed into the recycling sector through MMRPL (Mahindra MSTC Recycling Private Ltd)
MMRPL is poised to set up one of the organized state of the art auto shredding plant in India for recycling ELVs (End of Life Vehicles) and other white goods by converting these into shredded scrap which is a vital raw material for steel plants.
A collection and dismantling centre with state-of-the-art technology has been set up in Greater Noida, State of Uttar Pradesh as a supply feedstock for the auto shredding plant.
Company mainly source, purchase, and sell, on behalf of their clients the following:
- Iron bearing materials like scrap, DR pellets, DRI, calibrated lump ore, HBI, etc.
- Coking Coal & Coke.
- Finished and semi-finished steel items like HR coil, CR coil, wire rods, billets, etc.
- Petroleum & petrochemical products.
- Any other industrial raw material, preferably bulk in nature or high values as per the requirement of client.
- Imported thermal coal.
Key Players in providing e-auctioning services (coal, iron ore,Steel) to various government entities:
- MSTC Ltd.
- M-Junction (It is a 50:50 joint venture of two Indian steel conglomerate – the Steel Authority of India Ltd (SAIL) and Tata Steel)
Online draw system developed by MSTC Ltd:
On behalf of certain oil marketing companies, Company has developed online draw system for selection of dealership for LPG across the country.
The transparency in the process has developed such a confidence among all the stakeholders that they have also entrusted MSTC Ltd with the job of developing a similar online draw system for distribution of retail petrol pumps.
Management Team:
- Mr. Bam Bahadur Singh (Designation: Chairman and Managing Director)
- Mr. Subrata Sarkar (Designation: Director (Finance) and CFO (Whole Time Director))
Peer Group Comparison:
There are no listed companies in India which are engaged in the same line of business as MSTC Ltd and comparable to company’s scale of operations, hence comparison with industry peers is not applicable.
Financials of the Company:
| (in Crores) | FY 16 | FY 17 | FY 18 | 30th Sept 18 |
|---|---|---|---|---|
| Revenue | 3307.8 | 1876.2 | 2793.15 | 1491.55 |
| Net Profit | (-247.1) | (-139.15) | (-6.4) | (-15.88) |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 13th March 2019 |
| Issue Closes on:. | 20th March 2019 |
| Issue Price | Rs.120 – 128 |
| Retail / Employee Discount | Rs.5.5 per Share |
| Face Value | Rs.10 |
| Minimum Lot | 90 Shares |
| Minimum Investment | Rs. 11,520 |
| Issue Constitutes | 25.10% |
| Issue Size | Rs. 226 cr ($32.3 million) |
| Market Cap | Rs. 901 cr ($128 million) |
| Listing at | NSE & BSE |
| Equity Shares Offered (OFS) | 1,76,70,400 |
| Equity Shares Prior to the Issue | 7,04,00,000 |
| Equity Shares after the Issue | 7,04,00,000 |
Also Read: How to know whether IPO is a Good IPO or a bad IPO?
Important Dates:
| Finalization of Basis of Allotment | on or Before 20th March 2019 |
| Initiation of Refunds | on or Before 22nd March 2019 |
| Credit of Equity Shares: | on or Before 25th March 2019 |
| Listing Date: | on or Before 26th March 2019 |
Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 06:00 PM) | Shares Offered | Day-1 | Day-2 | Day-3 | Day-4 | Day-5 | Day-6 |
|---|---|---|---|---|---|---|---|
| QIB | 1,32,00,000 | 0.00 | 0.00 | 0.79 | 0.85 | 0.85 | 1.13 |
| NII | 26,40,000 | 0.01 | 0.08 | 1.69 | 1.69 | 1.69 | 2.15 |
| Retail | 17,60,000 | 0.45 | 1.05 | 2.78 | 2.80 | 2.86 | 2.95 |
| Employee | 70,400 | 0.13 | 0.51 | 1.44 | 1.47 | 1.50 | 1.54 |
| TOTAL | 1,76,70,400 | 0.05 | 0.12 | 1.12 | 1.17 | 1.18 | 1.46 |
Also Read: Embassy Office Parks IPO Details.
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| (-0.92) | NA | (-1.77%) | 52.01 |
| Company Contact Info: |
|---|
| MSTC Limited 225-C, A. J. C. Bose Road, Kolkata – 700020, West Bengal, India Tel: +91-33-2281-3088 Email Id: cosec@mstcindia.co.in Website: www.mstcindia.co.in |
| IPO Registrar Info: |
|---|
| Alankit Assignments Limited 205-208, Anarkali Complex, Jhandewalan Extension, New Delhi -110 055 Tel: +91-11-4254-1951/+91-22-4348-1200 Investor Grievance E-mail: mstcigr@alankit.com Website: www.alankit.com |
| Lead Manager to the Issue: |
|---|
| Equirus Capital Private Limited 12th Floor, C Wing, Marathon Futurex N. M. Joshi Marg, Lower Parel, Mumbai 400 013, Maharashtra, India Tel.: +91-22-4332-0600 Investor E-mail: investorsgrievance@equirus.com Website: www.equirus.com |
