MSTC Ltd. which is an e-commerce company for the government of India is set to launch its initial public offer for three days from March 13.
The share will be introduced at RS 121-128 per share, the company plans to sell 1.76-crore shares which makes about 25 percent of the whole company share value. There will be a fall in the government’s stake from approx 89 percent to 64 percent after the sale of shares.
MSTC started as a trading company for importing ferrous scrap and came up as an e-commerce provider which mainly trade for bulk raw material. The company gets its 90 percent of the business by providing e-auction/e-sale and e-procurement services from the government and state-controlled entities as of September 30, 2018.
Bam Bahadur Singh, chairman, and managing director said that the revenue from e-commerce is supposed to increase at 10-15 percent each year. While the e-commerce business shared to 7 percent of the firm’s overall sales as of Sept. 30, 2018.
Singh concluded in the press, “A couple of our debtors have gone to the NCLT, so we had to provide for all those debts”
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