MSTC IPO opens today: Should you subscribe?

NEW DLEHI: Mini Ratna MSTC is all set to hit the market with an initial public offering on Wednesday. The government has proposed to offload 1.76 crore shares, or 25 per cent, of total paid-up equity in the largest B2B e-commerce company in India. The issue by the Kolkata-headquartered firm will be closed on March 15.

Here are key things you must know before considering the IPO:

Business background
The company is engaged in three major activities – e-comme ..

The company offers e-auction/e-sale, e-procurement services and development of customised software. It partners with different government agencies and ministries to conduct e-auctions and offers comprehensive range of services in e-procurement segment.

In the trading segment, the company sources industrial raw materials like low-ash metallurgical coke, HR coil, naptha, crude oil, coking coal, steam coal and line pipes for its clients across steel, oil and gas, power sectors.

Be ..

Financials
The financial performance of the company is not encouraging, said Choice Broking. “Despite reporting increased transactions across the marketing and e-commerce segments, it reported a 16.2 per cent CAGR decline in top line over FY16-18, which was mainly due to sharp decline the sales of thermal coal. Reported Ebitda was at loss for the majority of the time period,” the brokerage said.

Revenues for the first half of FY19 came in at Rs 1,491.55 crore. For F ..