MSTC Limited IPO
Company Promoters :
The Promoter of the company is the President of India, acting through the MoS. The Promoter currently holds 89.85% of the pre-offer paid-up Equity Share capital of the Company.
Business Description :
MSTC Limited was incorporated in 1964 as a trading company to deal in the export of scrap. In subsequent years, the company has grown into a large diversified, multi-product services and trading company. It was a canalising agency for import of ferrous scrap until 1992 and established itself one of the leading e-commerce service providers in the country after de-canalisation. MSTC has also entered into the recycling business through a 50:50 joint venture with Mahindra Intertrade Limited (MIL) for setting up a shredding plant and collection centres across the country.
There are three main business verticals of MSTC
Since, 2002, the company is offering e-auction platforms to many government and government controlled entities. As on December 31, 2018, MSTC has conducted over 1,90,000 auctions, serving over 1,10,000 users. It has conducted 28,600 auctions/events during 2018 and 30,500 auctions/event for nine months period ended December 31, 2018.
MSTC has a country-wide footprint with 4 regional offices located in Delhi, Mumbai, Kolkata and Chennai, 13 branch offices in major cities of India and 3 site offices.
Objects of the Issue:
The objects of this offer are to:
Carry out the disinvestment of Equity Shares by the Selling Shareholder in the company.
Achieve the benefits of listing the Equity Shares on the Stock Exchanges. The company will not receive any proceeds from the offer and all proceeds will go to the Selling Shareholder.
Summary of financial Information