The issue received bids for 22,83,750 shares by 10:30 am, which was 13 per cent of the total issue size of 1,76,70,400.
At the upper price band of Rs 121-128 per share, the issue size stands at Rs 226 crore.
At the higher end, the company is demanding a price to sales valuation of 0.4 times to its FY18 sales. Based on FY19E and FY20E sales, the issue is calling for a P/S valuation of 0.3 times.
In terms of EV/sales, the stock is available at a 0.26-0.29 times FY18 numbers.
While brokerages are positive on the issue, some of them raised concerns about losses the company incurred in previous financial years and the company’s exposure to legal proceedings related to a dispute in connection with the cancellation of export-import licence.
“Considering the importance and positioning of its services among various government entities, favourable government policies for business growth, stable dividend payout and improvement in the financial performance, the issue seems to be attractively priced,” said Choice Broking.
MSTC will offer a discount of Rs 5.5 per share on the allotment price to retail investors.
Under the Ministry of Steel, the Miniratna has three main business verticals — e-commerce, trading and recycling.