State-run MSTC files draft papers with Sebi to float IPO

State-run MSTC has filed draft papers with capital markets regulator Sebi to float an initial public offering. The initial public offer (IPO) will see sale of 17,600,000 shares, amounting to 25 per cent stake, of the company through the offer for sale (OFS) route by the government, the draft prospectus filed with Sebi showed.

A part of the public offering has been reserved for employees of the company. Currently, the government holds 89.85 per cent stake in MSTC. The divestment would bring down government holding to 64.85 per cent.

The company, under ministry of steel, is engaged in providing e-commerce related services across diversified industry segment offering e-auction/e-sale and development of customised solutions. It is also a major player in trading of bulk raw material. As on March 31, 2018, MSTC's profit after tax for 2017-18 stood at Rs 72.09 crore and its net worth was Rs 560.28 crore. Equirus Capital is the sole book running lead manager for this offer.

(With inputs from agencies.)