Government eyes Rs 226 crore from MSTC IPO

Government eyes Rs 226 crore from MSTC IPO

Mumbai, Mar 12: The government is mobilising about Rs 226 crore by divesting 25% of its holding in MSTC, the largest B2B e-commerce platform in India, through an initial public offering (IPO). This will the first divestment offering through an IPO this year, which is part of the government’s fiscal 2019 budget target of raising Rs 80,000 crore. The last divestment through the IPO route was in Garden Reach Shipbuilders & Engineers in October 2018.
The government is divesting nearly 1.8 crore MSTC shares through this IPO of which 70,400 shares are reserved for its employees, the company said. The offer is set to open on March 13 and close on March 15 with the price band at Rs 121-128 per share. Retail investors and the company’s employees will get a discount of Rs 5.5 per share on the final offer price. The company will not receive any proceeds from the IPO.