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| MCX to hit capital market with IPO on February 22-24 |
| Press Trust Of India / New Delhi Feb 15, 2012, 00:27 IST |
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MCX, India’s largest commodity bourse, will hit the capital market with an estimated Rs650-750 crore initial public offer (IPO) on February 22. This will be the first-ever IPO by an exchange in the country.
Bidding for shares would begin on February 22 and close on February 24, the company said in its red herring prospectus. While the price band for the IPO is yet to be fixed, sources say it could raise Rs650-750 crore. This could also be the first IPO of 2012. The offer would comprise sale of about 6.43 million shares, accounting for a 12.6 per cent stake in the company.
This would include 2.5 lakh shares reserved for employees. Besides the promoter Financial Technologies (India) Ltd, shares would also be sold by other shareholders like State Bank of India, Corporation Bank, Bank of Baroda, ICICI Lombard General Insurance, GLG Financials Fund and Alexandra Mauritius Ltd in the IPO.
The shares would have a face value of Rs10 each, while the premium would be calculated later. MCX said in its RHP that the IPO have been assigned top-most grading of '5/5' by Crisil, indicating strong fundamentals. The IPO Grading is assigned on a five-point scale from 1 to 5, with IPO Grade 5/5 indicating strong fundamentals and IPO Grade 1/5 indicating poor fundamentals. The company further said that the equity shares are proposed to be listed on the BSE and it has received in-principle approval from the BSE for the listing.
Last week, MCX Chairman Venkat Chary had said that the company's IPO would be game changer in the stock market and would lift the sentiment from the current slump. "This IPO will lift all the boats," he had said. The IPO could give the exchange the market value of over Rs5,000 crore. The promoters FTIL currently holds 31.2 per cent stake in MCX, which would come down to about 26 per cent after the IPO. MCX, the largest commodity bourse in the country, has more than 70 per cent share in an annual estimated turnover Rs177 lakh crore for the entire commodity derivatives market.
Globally, MCX is the fifth largest commodity exchange, while it figures among the top two positions in gold and silver segments. It would be the first exchange in India to go public, putting the country at par with other markets like the US, UK, Japan, Australia, Singapore and Hong Kong. MCX had recorded Rs447.5 crore of total income and Rs 176.2 crore of net profit in the fiscal year ended March 31, 2011. In the current fiscal, the company has posted net profit of Rs 218 crore and total income of Rs 474 crore for the nine-month period ended December 31, 2011.
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