Govt to raise upto Rs 226 cr from MSTC divestment

State owned MSTC Limited's initial public offering (IPO) that hits market on March 13 will raise around Rs 226 crore for the government, based on the highest price band.

The price band for the issue has been fixed at Rs 121 -128 for each share of Rs 10.

In this "offer for sale", the government is divesting 1.76 crore of its shares which is equivalent to 25 per cent of the paid-up equity share capital.

The divestment would bring down government holding in MSTC to 64.85 per cent from the existing 89.85 per cent, the company said.

A discount of Rs 5.50 per equity share would be offered to the retail and eligible employee bidders.

The offer includes a reservation of up to 70,400 equity shares for eligible employees for allotment on a proportionate basis.

Equirus Capital Pvt Ltd is the sole book running lead manager and Alankit Assignments Ltd is the registrar for the issue.

The mini-Ratna company, under the Ministry of Steel, has three main business verticals -- e-commerce, trading and recycling.