The offer for sale from MSTC Limited which had tapped the capital markets with its issue of 1,76,70,400 equity shares in a price band of Rs 121-128 has been extended. There was a discount of Rs 5.50 for retail investors and eligible employees. The issue consisted of compulsory 75% QIB which did not happen even though the issue was overall subscribed 1.12 times. The total issue size at the upper band was of Rs 226.18 crs.
A total of 37,085 applications were received in the issue which amounts to 1.9 times on basis of applications.
The merchant banker was a new one and this was probably his first issue. That sums up the way he handled the issue and made a disaster of an issue of just about Rs 226 crs.
Full details of the subscription are given below: –
MSTC Subscription
| Bucket Size | Shares Applied for | Times Oversubscribed | |
| QIB | 13200000 | 10427850 | 0.79 |
| HNI | 2640000 | 4454100 | 1.69 |
| Retail | 1760000 | 4806540 | 2.73 |
| Employee | 70400 | 101160 | 1.44 |
| Total | 17670400 | 19789650 | 1.12 |
The issue has been extended to now close on Wednesday the 20th of March with the new piece band being Rs 120-128. Retail investors and eligible employees are entitled to a discount of Rs 5.50.
