MSTC Ltd, a state-run e-commerce and trading company, made a weak debut on the stock markets on Friday as its shares fell more than 8% from the initial public offering price.
Shares of MSTC began trading on the BSE at Rs 111 apiece, compared with the IPO price of Rs 120, stock-exchange data showed. The shares traded between Rs 110.05 and Rs 116.55 before closing the day at Rs 114.20 apiece, down 4.8%.
MSTC’s IPO failed to garner full subscription during the stipulated time and had to be extended by three days.
It is the second state-run company whose IPO couldn’t sail through during the stipulated three-day period after Garden Reach Shipbuilders & Engineers Ltd in September 2018.
The IPO is a share sale by the central government. The company is targeting a valuation of as much as Rs 896 crore ($130 million) at the upper end of the price band.
Kolkata-headquartered MSTC had filed its IPO proposal on 1 February. It received regulatory approval on 28 February.
MSTC provides e-commerce-related services across industry segments. It offers e-auction and e-procurement services and develops customised software. It is also a major player in the trading of bulk raw material.
MSTC, incorporated in 1964, originally began operations as a trading company to regulate the export of metal scrap. Since then, the company has grown to become a diversified, multi-product services and trading company.