State-run MSTC Ltd gets SEBI nod for going public

MSTC Ltd, a State-owned e-commerce company based in Kolkata, has received SEBI approval for initial stake sale to raise about ₹350 crore.

“MSTC is looking to raise about ₹350 crore, and the issue might open during the second week of March. This will make it the first Public Sector Unit (PSU) to raise funds through an Initial Public Offering (IPO) in 2019,” market sources told BusinessLine.

Further, this could be also the final IPO in this financial year, sources added.

MSTC is yet to finalise the price band. MSTC’s IPO comprises an Offer For Sale (OFS) of 17,600,000 shares, or 25 per cent of total paid-up equity by the Government of India, acting through the Ministry of Steel, according to the Draft Red Herring Prospectus (DRHP) filed with the market regulator.