MCX to revive IPO plans; may soon file fresh prospectus

Within a year of shelving its plans to tap the capital market with an initial public offer, the country's largest commodity bourse, Multi-Commodity Exchange (MCX), is believed to be reviving the IPO and may soon approach the regulator.

Jignesh Shah-led Financial Technologies (FTIL), the promoter of MCX, is believed to have sounded out some investment bankers and brokers recently about the possibility of reviving plans for the IPO, market sources said.

The FTIL and MCX management are said to have been enthused by the recent upsurge on the bourses and expectations for a possible recovery in the stock market as well as overall economic scenario by the second half of 2009.

When asked if MCX was reviving the IPO plans and could soon file a fresh draft red herring prospectus (DRHP) with market regulator Sebi, a company spokesperson did not give a direct reply.

"As per company policy, we do not respond to day to day market news and rumours. We also do not do selective disclosures," the spokesperson said in an emailed statement.

"At the time of achieving the milestone we report it to stock exchanges so that the information regarding development is uniformly distributed to all stakeholders," he added.

There are also speculations that the IPO revival plans could be due to pressure from some investors such as Citigroup and Fidelity, who wanted to exit after MCX's listing.