State-owned e-commerce firm MSTC‘s shares listed on March 29 at a discount to the issue price despite positive market sentiment. The tepid response to the issue and reduction in price band could be the reason for the weakness in stock price.
The stock opened at Rs 115 on the National Stock Exchange, 4 percent lower than the issue price of Rs 120 while on BSE, it started the trade at Rs 111, a discount of 7.5 percent.
At the time of publishing this article, the stock was trading at Rs 116 on the BSE and Rs 117.50 on the NSE.
The Rs 226-crore initial public offering was subscribed 1.5 times, especially after the company extended the share sale until March 20 and reduced its lower end of the price band.
The issue was subscribed 1.12 times on March 15, when the IPO was originally set to close.
MSTC revised its IPO price range for the share sale to Rs 120-128 per share on March 18 from Rs 121-128.
MSTC specialises in international trade of ferrous input materials and importes millions of tons of ferrous melting scrap, old ships for breaking, sponge iron, hot briquetted iron, re-rollable scrap etc.