MSTC Limited IPO
Background of the Company
MSTC Limited is under the administrative control of the Ministry of Steel of MSTC Limited, Government of India, PSU of Mini Ratna category-I The company was established on September 9, 1964, as a regulatory authority for the export of iron scrap. The Government holds 89.85% stake in the company. It was a canalizing agency for importing iron scrap and breaking old vessels until 1992.
MSTC became a subsidiary of SAIL in 1974. In 1982, it got delinked from SAIL and became an independent company under the Ministry of Steel.
MSTC is making rapid progress in e-commerce sector to promote e-governance in all sectors of the economy. MSTC today is rendering its services to steel and petrochemical sectors for raw material support and seamless e-commerce services with an innovative approach to various PSUs, Central Government/State Government and private sector companies. Successful e-auction of coal blocks is yet another feather in MSTC’s cap and MSTC today stands taller than yesterday. It is the most preferred service provider and various Central PSUs, State Governments are engaging MSTC on nomination basis based on its strong credentials.
To promote e-commerce, MSTC has emerged as a major player in the country. Its e-auction portal, www.mstcecommerce.com has become a very popular tool for businesses to transact business transparent and fairly. Portal sellers and buyers provide a virtual market for doing business in metal scraps (iron / non-ferrous), surplus stores, plants and machinery, obsolete parts, vehicles, minerals, forests, and agricultural products, real estate etc.
MSTC has recently also developed an e-procurement portal, which can be adapted to meet customer needs. It has made itself a place to provide customized digital solutions and has emerged as a large e-commerce company in the B2B and B2C area.
New Initiatives
1. e-Commerce in Agricultural and Forest products like tobacco, tendu leaf, timber, etc.
2. e-Commerce in Mineral products like Iron Ore, imported thermal coal, chrome, manganese ore etc.3
3. Recently, MSTC has set up an auto- shredding plant through a JV company with Mahindra Group. This is one of its own kind in India and will go a long way in recycling special grade steels besides substituting imports for such materials.
Subsidiaries/Joint Venture of MSTC
Subsidiary Company – Ferro Scrap Corporation Limited (FSNL) was formed in 1979 as a joint venture company. During 2002-03, FSNL became a 100% subsidiary of MSTC. FSNL is mainly engaged in the recovery of Ferro scrap and reddish iron metal from the slag mugs and debris arising out of iron and steel making in steel plants.
Joint venture company– MSTC had set up a joint venture company M / s Mahindra MSTC Recycling Private Limited for the first Auto Shredding Plant in India to convert End Life Vehicle (ELV) and other white goods into a shedding scrap, which is for secondary steel There is important raw material. In the first phase, with the principles of environmentally friendly management, modern technology is being set up in Greater Noida and collection centers are being set up.
Objects of the MSTC Limited IPO:
MSTC Limited IPO Details:
| Open Date: | Mar 13 2019 |
| Close Date: | Mar 20 2019 |
| Total Shares: | 17670400 |
| Face Value: | ₹ 10 Per Equity Share |
| Issue Type: | Book Built Issue IPO |
| Issue Size: | 226.18 Cr. |
| Lot Size: | 90 Shares |
| Issue Price: | ₹ 121-128 Per Equity Share |
| Retail Discount: | 5.5 Per Equity Per Share |
| Listing At: | NSE,BSE |
| Listing Date: | Mar 29 2019 |
Promoters And Management:
Company Business:
Financials of MSTC Limited IPO:
| Year | Revenue(Cr) | Expense(Cr) | PAT(Cr) | FV | Debt | Equity(Cr) | NW(Cr) | Debt/NW | EPS |
| 2017 | 1876.2 | 1692.8 | 133 | 10 | 688 | 352 | 406 | 1.69 | 18.89 |
| 2018 | 2793.1 | 2758.3 | -9.7 | 10 | 766 | 352 | 366 | 2.09 | -1.38 |
| 6MFY18 | 1491.5 | 1450.0 | -12.1 | 10 | 298 | 704 | 327 | 0.91 | -1.72 |
Comparison With Peers:
Recommendation on MSTC Limited IPO:
Lead Manager of MSTC Limited IPO:
Registrar of MSTC Limited IPO:
Bid Details of MSTC Limited IPO as on
20-Mar-2019 17:00:00 IST
Discussion on MSTC Limited IPO:
52 Comments
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*So who are major ppl invested in MSTC* :
FII – Morgan stanley
DII – GIC, BoB, LIC, New India Insurance
NBFC – Anand Rathi
http://ipo.alankit.com/
MSTC ALLOTMENT
what about icici prudential
There is nothing we can earn in OFS these days. So it is better to avoid for time being.
thanx for ur kind review…its alwys helping hand for us
Any News on allotmemt?
RVNL IPO – From 29 March to 03 April
Qib 50%
Hni 15%
Retail 35%
Size approx 480 cr
Price band 17-19
50 Np discount, per share
Lot size 780 shares.
Should we subscribe?
RVNL IPO – From 29 March to 03 April – 253,457,280 shares being offered with Retail Discount
It is not good if the IPO subscription date need to be extended due to not good response. However I applied for small qty keeping in mind retail investor discount.
Withdrawn….
Why to take risk unnecessarily…
Hi.. What is your opinion regarding this ipo as whether to subscribe for listing gain or not..??
WHAT ABOUT CPSE ETF-4… ??? APPLY OR NOT ???
Apply for listing gain.
4% discount for every category..
How to apply? Procedure
https://investorzone.in/cpse-etf-opening-on-20-03-2019-should-you-invest/
Thank you Market wizard
what is the price of cpse etf ffo-4….or which date is to be taken in account for calculating price of it
Yes it has been extended till 20.03.2019.
*MSTC issue extended to 20 March*
Qib not fully subscribed…now?
Very Poor response from Institutional Investors. So Let us see if LIC bails out this else this IPO will be rejected.
Dear sir plz update regarding embassy office park (REIT)
Will update tomorrow.
What is the quiteria for QIB?
For MSTC the QIB has to go above 1.
@ market wizard waiting for your comment !! this is some what intresting RII crossed 100%.
Muthooth Microfin IPO tentatively hit market on 25th March 2019. Issue size approximate 600 cr.
Should we apply
And I have account in zerrodha
How to apply
How to apply by upi
1. Metropolis Healthcare Ltd IPO to hit market by last week of March. Issue size 1200 cr. Retail 10%,HNI 15%, QIB 75%.
2.Muthooth microfin
IPO to hit market by last week of March. Issue size 600 cr 700 cr.
Pls inform your clients accordingly.
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NCLAT to hear Essar promoters’ plea against ArcelorMittal plan on Thursday
CPSE ETF KA BLOG ???
Will take a call on third day by seeing the response.
Embassy-office-parks RIETS
Issue Size – (No. of Units) 129556000
At Floor Price of Rs. 299/-
Price Band 300.00-299.00
mkt tradable lot 400
minimum bid in offer document 800
listing bse/nse
retail minimum application 800 units * rs 300 = rs 2,40,000
fwd.. CPSE ETF 4th series of 3500 crores with along with Green shoe can go up to 10,000 crores
Anchor opens on 19th March
Non Anchor on 20th & 22nd March
21st March being holiday, last day would be 22nd March
The business of the Company
More than 80% of the Revenue comes from Trading of the materials. Let us see how this Model Works.
They procure materials on behalf of the customers based on payment commitments made by such customers.
The process of cash and carry can be in two modes:
a) purchase–sale model = The volume of the transaction is reflected as the turnover of the Company. In this model, they are purchasing material on behalf of their customer and later on supplying to them upon receipt of payment.
b) facilitator mode = The volume of business is not taken as turnover since the ownership of the goods is not vested in the Company at any point in time. In this model, they basically act as a bridge between the buyer and seller.
This trading business done through the associate supplier model. The selection of associate suppliers for a particular material is done through an open process for a fixed tenure. The Company participates in tenders floated by the buyers with the complete back up of supply of the desired material from the associate supplier. Payment is released to the associate supplier only after receipt of the same from the buyer. All the arrangements are on a back-to-back basis with the associated supplier. In this arrangement, the company is fully dependent on the associate supplier for the fulfillment of their orders. If the associate suppliers fail to fulfill their contractual commitments, the customers may take action against the company.
Since they offer credit facilities to the customers in both cases, the receivables may be higher than the revenue earned by the Company from their trading vertical.
Risk
As per DRHP, there have been instances of delayed payments and defaults in payment by some of their customers which has becomes a bad debt for the company.
Hi MW,
Should we apply or not?
The average cost of acquisition per Equity Share by the Promoter/Selling Shareholder as on the date of this Red Herring Prospectus is ₹ 0.049.
Thord party ASBA or UPI is liable to be rejected.
*MSTC Limited – IPO*
(The Govt. Of India Enterprise)
Opens: 13th March 2019
Closes: 15th March 2019
Prize Band: *INR 121-128*
Discount: Rs. 5.50 per share to retail & Employees
Lot size 90 shares.
Category wise issue Split:
QIB: 75%
HNI: 15%
Ret: 10%
CPSE ETF tranch 4 expected to start on 25th march 2019
No Bro.. for retail 20-32
20-22
The company has incurred a loss for half-year period ended on September 30, 2018, Fiscal 2018 and Fiscal 2016 respectively based on the Restated Financial Statements.
The said losses are primarily due to bad debts being written off and provisioning done for other bad and doubtful advances and debts.
The MSTC has shown a loss of 9 Cr in FY18 as compared to a profit of 133 Cr in FY17 due to the following reason.
1. The Employees expense has gone up in FY18 due to Pay Revision.
2. The other expenses increased by 270.52% to ₹ 877 Cr in Fiscal 2018 from ₹236 Cr in Fiscal 2017. This increase was primarily due to:
(i) bad debts are written off worth of ₹ 459 Cr
(ii) an allowance for other bad and doubtful advances and debts of ₹ 222 Cr in Fiscal 2018.
Bidding and validation process under UPI
1. Before submission of the application with the intermediary, the RII would be required to have/create a UPI ID, with a maximum length of 45 characters including the handle (Example: InvestorID@bankname).
2. RII will fill in the bid details in the application form along with his/ her bank account linked UPI ID and submit the application with any of the intermediaries.
3. The intermediary upon receipt of the form will upload the bid details along with UPI ID in the stock exchange bidding platform.
How to create a UPI ID in SBI:
Step 1: Download the SBI UPI app on your smartphone from google play store
Step 2: After the download, verify the registered mobile number via SMS. This should be the same number registered with your respective bank
Step 3: Once the SMS is received, the app will automatically verify the mobile number
Step 4: To begin the registration process, enter a ‘Virtual Address’, ‘First Name’, ‘Last Name’, ‘Email’. Answer the secret question and choose the respective bank
Step 5: Accept all terms and conditions and choose the ‘Next’ button
Step 6: Choose a bank account, click ‘Register’. Choose a 6-digit password.
Step 7: Set up an m-PIN by submitting debit card details key in OPT to confirm m-PIN.
Step 8: A registration confirmation message will be sent to the respective mobile number
This is how UPI will be phased out for applying application in IPO.
Phase I: From January 01, 2019, the UPI mechanism for retail individual investors through intermediaries will be made effective along with the existing process and existing timeline of T+6 days. The same will continue, for a period of 3 months or floating of 5 main board public issues, whichever is later.
Phase II: Thereafter, for applications by retail individual investors through intermediaries, the existing process of physical movement of forms from intermediaries to Self-Certified Syndicate Banks (SCSBs) for blocking of funds will be discontinued and only the UPI mechanism with existing timeline of T+6 days will continue, for a period of 3 months or floating of 5 main board public issues, whichever is later.
Phase III: Subsequently, final reduced timeline will be made effective using the UPI mechanism.
Once the UPI payment is fully enforced the following will be applicable:
It has been decided that an investor making an application using any of the aforesaid channel, shall use only his / her own bank account or only his / her own bank account linked UPI ID to make an application in public issues.
Conclusion: The UPI has not been made mandatory as yet. However, once it is made then you can apply only one application from one account.
Sir
One more query
After 3rd phase
Online asba will continue or not
I think it will be discontinued and UPI will be made mandatory. As listing time will have to be reduced to T+3 days which is only possible through UPI.
Dear admin sir
Request you to clarify new ipl application bidding norms from sebi.
Can we apply 5 application in this ipo threw 1 bank account.
What is the upi bid process
U can apply 1 application through 1 pan card, 1 bank account update with 1 pan. So Ans is No..