This is a public announcement for information purposes only and is not a prospectus announcement. This does not constitute an invitation or offer to acquire, purchase or subscribe to securities.
Not for release, publication or distribution directly or indirectly outside India.
MSTC LIMITED

Our Company was incorporated as "Metal Scrap Trade Corporation Limited", under the provisions of the Companies Act, 1956 on September 9, 1964 at Kolkata and the Certificate of Incorporation was issued by the Registrar of Companies, West Bengal at Kolkata ("RoC"). Subsequently the name of our Company was changed to "MSTC Limited" pursuant to the special resolution passed by the shareholders in the general meeting held on September 26, 1994 and a fresh certificate of incorporation consequent upon such change of name was issued by the RoC on November 9, 1994. For details of change in the name and Registered Office of our Company, please refer to the section titled "History and Certain Corporate Matters" on page 134 of the Prospectus.

Registered and Corporate Office: 225-C, A. J. C. Bose Road, Kolkata - 700 020, West Bengal, India; Contact Person: Ajay Kumar Rai, Company Secretary and Compliance Officer;
Tel: +91-033-2281-3088; Email: cosec@mstcindia.comWebsite: www.mstcindia.co.inCorporate Identity Number: U27320WB1964GOI026211
OUR PROMOTER: THE PRESIDENT OF INDIA ACTING THROUGH THE MINISTRY OF STEEL, GOVERNMENT OF INDIA

Our Company has filed the Prospectus dated March 22, 2019 ("Prospectus") with the Registrar of Companies, West Bengal at Kolkata (the "RoC") on March 22, 2019 and the Equity Shares are proposed to be listed on the BSE Limited ("BSE") and National Stock Exchange of India Limited ("NSE") and the trading will commence on March 29, 2019.

BASIS OF ALLOTMENT


INITIAL PUBLIC OFFERING OF 17,670,400 EQUITY SHARES OF FACE VALUE OF RS. 10 EACH ("EQUITY SHARES") OF MSTC LIMITED ("THE COMPANY" OR THE "ISSUER") THROUGH AN OFFER FOR SALE BY THE PROMOTER, THE PRESIDENT OF INDIA, ACTING THROUGH THE MINISTRY OF STEEL, GOVERNMENT OF INDIA ("THE "SELLING SHAREHOLDER") FOR CASH AT A PRICE OF RS. 120* PER EQUITY SHARE ("THE OFFER PRICE"), AGGREGATING TO RS. 2,110.38 MILLION (THE "OFFER"). THE OFFER INCLUDED A RESERVATION OF 70,400 EQUITY SHARES AGGREGATING TO RS. 8.06 MILLION FOR SUBSCRIPTION BY ELIGIBLE EMPLOYEES FOR ALLOCATION AND ALLOTMENT ON A PROPORTIONATE BASIS ("EMPLOYEE RESERVATION PORTION"). THE OFFER LESS EMPLOYEE RESERVATION PORTION IS REFERRED TO AS THE NET OFFER. THE OFFER AND THE NET OFFER CONSTITUTED 25.10% AND 25.00% RESPECTIVELY, OF THE POST OFFER PAID-UP EQUITY SHARE CAPITAL OF THE COMPANY.

*A discount of Rs. 5.50 per Equity Share to the Offer Price was offered to the Retail Individual Bidders ("Retail Discount") and a discount of Rs. 5.50 per Equity Share to the Offer Price was offered to the Eligible Employees bidding in the Employee Reservation Portion ("Employee Discount").

Offer Price: Rs. 120 per Equity Share of face value of Rs. 10 each
The Offer Price is 12 times of the face value of the Equity Shares
Risk to Investors
The Book Running Lead Manager associated with the Offer has handled one public issue in the past three years out of which none closed below the issue price on listing date.
The average cost of acquisition per Equity Share for our Promoter and Selling Shareholder is Rs. 0.049 per Equity Share. The Offer Price is Rs. 120.
Weighted Average Return on Net Worth for last three full financial years based on Restated Financial Statements is (2.55)%.
The Basic and Diluted EPS for FY 2016, FY 2018 and the half year ended on September 30, 2018 is negative.
BID/OFFER PROGRAMME
BID/OFFER OPENED ON MARCH 13, 2019     I     BID/OFFER CLOSED ON MARCH 20, 2019

This Offer was made in terms of rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended ("SCRR"), read with Regulation 31 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended ("SEBIICDR Regulations"). The Offer was made through the Book Building Process in terms of Regulation 6(2) of the SEBI ICDR Regulations, wherein not less than 75% of the Net Offer was made available for allocation on a proportionate basis to Qualified Institutional Buyers ("QIBs") ("QIB Portion"). 5% of the QIB Portion was made available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion was made available for allocation on a proportionate basis to all QIB Bidders, including Mutual Funds, subject to valid Bids being received at or above the Offer Price. However, if the aggregate demand from Mutual Funds is less than 5% of the QIB Portion, the balance Equity Shares available for allocation in the Mutual Fund Portion will be added to the remaining QIB Portion for proportionate allocation to QIBs. Further, not more than 15% of the Net Offer was made available for allocation on a proportionate basis to Non-Institutional Bidders and not more than 10% of the Net Offer was made available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. Further 70,400 Equity Shares were reserved for allocation and Allotment on a proportionate basis to Eligible Employees bidding in the Employee Reservation Portion, subject to valid bids being received from them at or above the Offer Price. All Bidders were mandatory required to participate in the Offer through Application Supported by Blocked Amount ("ASBA") process by providing details of their respective bank account in which the Bid Amount were blocked. For details, see -"Offer Procedure" on page 285 of the Prospectus.

The Offer received 35795 applications for 24072210 Equity Shares (prior to technical rejections) resulting in 1.36 times subscription. The details of the applications received in the Offer from various categories are as under (prior to technical rejections):

Sr. No. Category No. of Applications No. of Equity Shares applied Shares Reserved as per Prospectus No. of times Subscribed Amount (Rs.)
A Retail Individual Investors 35495 4657860 1760000 2.65 571794930.00
B Non-Institutional Investors 36 4467510 2640000 1.69 545484960.00
C Qualified Institutional Bidders 9 14860710 13200000 1.13 1873174680 00
d Eligible Employee 255 86130 70400 1.22 10602810.00
  Total 35795 24072210 17670400 1.36 3001057380.00

Final Demand

A summary of the final demand as at different Bid prices is as under:

SI. No. Bid Price (in Rs.) Bid Quantity (%) To Total Cumulative Total Cumulative Total %
1 120.00 853290 3.30 25831170 100.00
2 121.00 7012440 27.15 24977880 96.70
3 122.00 8910 0.03 17965440 69.55
4 123.00 9540 0.04 17956530 69.51
5 124.00 5670 0.02 17946990 69.48
6 125.00 14310 0.06 17941320 69.46
7 126.00 7020 0.03 17927010 69.40
8 127.00 4410 0.02 17919990 69.37
9 128.00 13581000 52.58 17915580 69.36
10 Cut-off 4334580 16.78 4334580 16.78
  Total 25831170 100.00    

The Basis of Allotment was finalized in consultation with the Designated Stock Exchange, being BSE on March 27, 2019.

A. Allotment to Retail Individual Investors (after technical rejections)

The Basis of Allotment to the Retail Individual Investors, who have bid at the Cut-Off Price or at the Offer Price of Rs. 120 per Equity Share (Retail Discount of 75.50/- per Equity Share was offered to Retail Individual Investors), was finalized in consultation with the BSE. This category has been subscribed to the extent of 2.54 times. The total number of Equity Shares Allotted in Retail Portion is 17,60,000 Equity Shares to 19555 successful Retail Individual Investors. The category-wise details of the Basis of Allotment are as under:

SI. No. Category (No. of Shares applied for) No. of Applications Received % of Total Total No. of Equity Shares applied % to Total No. of Equity Shares Allotted per applicant Ratio Total No. of Equity Shares Allotted
1 90 29746 87.42 2677140 59.79 90 50:87 1538640
2 180 2190 6.44 394200 8.80 90 23:40 113310
3 270 627 1.84 169290 3.78 90 31:54 32400
4 360 272 0.80 97920 2.19 90 39:68 14040
5 450 320 0.94 144000 3.22 90 23:40 16560
6 540 79 0.23 42660 0.95 90 45:79 4050
7 630 29 0.09 18270 0.41 90 17:29 1530
8 720 58 0.17 41760 0.93 90 33:58 2970
9 810 92 0.27 74520 1.66 90 53:92 4770
10 900 136 0.40 122400 2.73 90 39:68 7020
11 990 54 0.16 53460 1.19 90 31:54 2790
12 1080 23 0.07 24840 0.55 90 13:23 1170
13 1170 11 0.03 12870 0.29 90 6:11 540
14 1260 8 0.02 10080 0.23 90 5:8 450
15 1350 18 0.05 24300 0.54 90 5:9 900
16 1440 15 0.04 21600 0.48 90 3:5 810
17 1530 159 0.47 243270 5.43 90 48:83 8280
18 1620 186 0.55 301320 6.73 90 42:73 9630
19 1710 2 0.01 3420 0.08 90 1:2 90

B. Allotment to Non Institutional Investors (after technical rejections)

The Basis of Allotment to the Non-Institutional Investors, who have bid at the Offer Price of Rs. 120 per Equity Share, was finalized in consultation with the BSE. The Non-Institutional Portion has been subscribed to the extent of 1.69 times. The total number of Equity Shares Allotted in this category is 26,40,000 Equity Shares to 35 successful Non-Institutional Investors. The category-wise details of the Basis of Allotment are as under:

SI. No. Category (No. of Shares applied for) No. of Applications Received % of Total Total No. of Equity Shares applied % to Total No. of Equity Shares Allotted per applicant Ratio Total No. of Equity Shares Allotted
1 1620 3 8.57 4860 0.11 958.00 1:1 2874
2 1710 3 8.57 5130 0.11 1011.00 1:1 3033
3 1800 1 2.86 1800 0.04 1064.00 1:1 1064
4 2070 1 2.86 2070 0.05 1224.00 1:1 1224
5 2700 1 2.86 2700 0.06 1596.00 1:1 1596
6 3060 1 2.86 3060 0.07 1809.00 1:1 1809
7 3150 1 2.86 3150 0.07 1862.00 1:1 1862
8 3600 2 5.71 7200 0.16 2128.00 1:1 4256
9 3870 1 2.86 3870 0.09 2288.00 1:1 2288
10 3960 1 2.86 3960 0.09 2341.00 1:1 2341
11 4500 2 5.71 9000 0.20 2660.00 1:1 5320
12 4860 1 2.86 4860 0.11 2873.00 1:1 2873
13 4950 1 2.86 4950 0.11 2926.00 1:1 2926
14 7740 1 2.86 7740 0.17 4576.00 1:1 4576
15 8550 1 2.86 8550 0.19 5054.00 1:1 5054
16 9000 2 5.71 18000 0.40 5321.00 1:1 10642
17 15300 1 2.86 15300 0.34 9045.00 1:1 9045
18 15570 1 2.86 15570 0.35 9205.00 1:1 9205
19 19530 1 2.86 19530 0.44 11546.00 1:1 11546
20 62100 1 2.86 62100 1.39 36712.00 1:1 36712
21 63000 1 2.86 63000 1.41 37244.00 1:1 37244
22 72000 1 2.86 72000 1.61 42564.00 1:1 42564
23 78120 2 5.71 156240 3.50 46182.00 1:1 92364
24 104940 1 2.86 104940 2.35 62038.00 1:1 62038
25 117180 1 2.86 117180 2.62 69273.00 1:1 69273
26 1269450 1 2.86 1269450 28.43 750462.00 1:1 750462
27 2479500 1 2.86 2479500 55.52 1465809.00 1:1 1465809

C. Allotment to QIBs

Allotment to QIBs, who have Bid at the Offer Price of Rs. 120 per Equity Share or above, has been done on a proportionate basis in consultation with the BSE. This category has been subscribed to the extent of 1.00 times of QIB Portion. As per the SEBIICDR Regulations, 1,32,00,000 Equity Shares were allotted to QIBs on a proportionate basis as no mutual funds have bidded in the Offer. The total number of Equity Shares Allotted in the QIB Portion is 1,32,00,000 Equity Shares, which were allotted to 8 successful QIB Bidders. The category-wise details of the Basis of Allotment are as under:

Category Fls/Banks FII MFs ICs NBFC Others Total
QIB 2 2 0 3 1 0 8

D. Allotment to Eligible Employees (after technical rejections)

The Basis of Allotment to the Eligible Employees, who have placed bid at the Cut-Off price or at the Offer Price of Rs. 120 (Employee Discount of Rs. 5.50/- per Equity Share was offered to the Eligible Employees applying under Employee Reservation Portion), was finalized in consultation with BSE. The Employee Reservation Portion has been subscribed to the extent of 1.09 times. The total number of Equity Shares Allotted in this category is 70,400 Equity Shares to 206 successful Bidders. The category-wise details of the Basis of Allotment are as under:

SI. No. Category (No. of Shares applied for) No. of Applications Received % of Total Total No. of Equity Shares applied % to Total No. of Equity Shares Allotted per applicant Ratio Total No. of Equity Shares Allotted
1 90 59 28.64 5310 690 90.00 1:1 5310
2 180 56 27.18 10080 1310 165.00 1:1 9240
3 270 14 6.80 3780 4.91 247.00 1:1 3458
4 360 15 7.28 5400 7.02 329.00 1:1 4935
5 450 22 10.68 9900 1287 412.00 1:1 9064
6 540 3 1.46 1620 2.11 494.00 1:1 1482
7 630 5 2.43 3150 4.09 577.00 1:1 2885
8 720 2 0.97 1440 187 659.00 1:1 1318
9 810 2 0.97 1620 2.11 741.00 1:1 1482
10 900 10 4.85 9000 11.70 824.00 1:1 8240
11 1080 4 1.94 4320 5.61 989.00 1:1 3956
12 1260 2 0.97 2520 3.27 1153.00 1:1 2306
13 1350 3 1.46 4050 5.26 1236.00 1:1 3708
14 1440 1 0.49 1440 1.87 1318.00 1:1 1318
15 1530 4 1.94 6120 7.95 1400.00 1:1 5600
              1:2 2
16 1620 2 0.97 3240 4.21 1483.00 1:1 2966
17 1710 1 0.49 1710 2.22 1565.00 1:1 1565
18 2250 1 0.49 1710 2.92 1565.00 1:1 1565

The IPO Committee of the Company on March 27, 2019 has taken on record the Basis of Allotment of Equity Shares approved by the Designated Stock Exchange, being BSE and has allotted the Equity Shares to various successful Bidders in accordance with the Basis of Allotment. The Allotment Advice are being dispatched to the address of the investors as registered with the depositories. Further, the instructions to the Self-Certified Syndicate Banks for unblocking of funds, transfer to Public Offer Account have been issued on March 27, 2019 and March 28, 2019 and payment instructions to non-Syndicate brokers have been issued on March 28, 2019. In case the unblocking of funds or credit of Equity Shares is not received within six working days, investors may contact the Registrar to the Offer at the address given below. The Equity Shares Allotted to the successful Allottees have been uploaded on March 28, 2019 for credit into the respective beneficiary accounts subject to validation of the account details with the depositories concerned. The Company has filed the Listing applications with BSE and NSE on March 28, 2019. The Company has received listing and trading approvals from BSE and NSE and the trading will commence on March 29, 2019.

All capitalised terms used and not specifically defined herein shall have the same meaning as ascribed to them in the Prospectus.

INVESTORS PLEASE NOTE

The details of the allotment made have been hosted on the website of the Registrar to the Offer, Alankit Assignments Limited All future correspondence in this regard may kindly be addressed to the Registrar to the Offer quoting full name of the first/ sole Bidder, Bid cum Application Form number, Bidder DP ID, Client ID, PAN, UPI ID, date of submission of Bid cum Application Form, address of the Bidder, number of Equity Shares applied for, the name and address of the Designated Intermediary where the Bid cum Application Form was submitted by the Bidder and a copy of the Acknowledgement Slip received from the Designated Intermediary at the address of Registrar to the Offer.

Alankit Assignments Limited
Registered Office: 205-208, Anarkali Complex, Jhandewalan Extension, New Delhi -110 055
Tel: +91-11-4254 1951/+91-22-4348-1200; E-mail: samnraj@alankit.com/saching@alankit.com
Investor Grievance E-mail: mstcigr@alankit.com; Website: www.alankit.com
Contact Person: Sachin Gupta S. Arunraj; SEBI Registration No.: INR000002532

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARES ON LISTING OR THE BUSINESS PROSPECTS OF MSTC LIMITED.

  For MSTC LIMITED
  On behalf of Board of Directors
Date : March 28, 2019 Self-
Place : Kolkata Company Secretary and Compliance Officer

MSTC LIMITED is proposing, subject to receipt of requisite approvals, market conditions and other considerations, an initial public offering of its equity shares and has filed the Prospectus with the Registrar of Companies. The Prospectus is available on the website of SEBI at www.sebi.gov.in, BSE Limited at www.bseindia.com, National Stock Exchange of India Limited at www.nseindia.com and the website of the BRLM at www.equirus.com. Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, see "Risk Factors" beginning on page 25 of the Prospectus.

The offer and sale of the Equity Shares has not been and will not be registered under the United States Securities Act of 1933, as amended ("Securities Act") or any state securities laws in the United States and may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. Accordingly, the Equity Shares are only being offered and sold (i) in the United States only to persons reasonably believed to be "qualified institutional buyers" (as defined in Rule 144A promulgated under the U.S. Securities Act, "Rule 144A") in reliance on the exemption from registration requirements of the Securities Act provided by Rule 144A, and (ii) outside the United States in offshore transactions in reliance on Regulation S promulgated under the Securities Act. Prospective purchasers are hereby notified that the seller of the Equity Shares may be relying on the exemption from the registration requirements of the Securities Act provided by Rule 144A. There will be no public offering of the Equity Shares in the United States.