Low demand extends MSTC IPO closing; QIB segment subscribed only 79%

Demand shortfall in one category can be met from the excess demand in other categories

The government had to extend the closing for the Rs 226-crore initial public offering (IPO) of MSTC due to a shortfall in demand. This is a rare setback for the IPO of a state-owned company.

While the offering garnered overall subscription of 1.12 times, it failed to get mandatory 100 per cent subscription in the qualified institutional buyer (QIB) category. According to the data provided by the stock exchanges, the QIB segment was subscribed only 79 per cent. The high net-worth individual (HNI), retail, and employee categories were oversubscribed.

Typically, demand shortfall in one category can be met from the excess demand