MCX IPO: Multi Commodity Exchange IPO

Very recently, it was the Mexican Stock Exchange which came out with its plans for an IPO. And now, the Indian counterpart, the MCX or the Multi Commodity Exchange of India is planning to come out with its proposed IPO.

When will the MCX IPO hit the markets?
There is no information available at the moment about the precise dates of listing of the MCX IPO.

What is the size of the MCX IPO?
The public issue of the MCX IPO will constitute a sale of around 10 million shares with a face value of Rs. 5 each. The IPO would comprise fresh issue of 6-million shares and another 4-million shares is to be sold by Financial Technologies (India) Ltd and Corporation Bank.

How much money will be raised by the MCX IPO?
The MCX IPO is expected to raise Rs 500 crore-Rs 600 crore.

What is the price band of MCX IPO shares?
The MCX IPO shares will be sold in the price band of Rs. 500 to 600 per share.

What are the business valuations and market standings of the MCX IPO?
As per Hindu, Currently, MCX enjoys market leadership, with a share of 77 per cent in volumes traded on commodities exchanges in India. The company has consciously focused on commodities such as bullion, energy and metals, which are benchmarked to international prices, Crisil said. Of the company’s total turnover, bullion accounts for 53 per cent, metals for 28 per cent, energy for 16 per cent and agricultural commodities account for the rest.

What are the financial results of the MCX Exchange?
For the year ended March 31, 2007, MCX reported a net profit of Rs 93 crore on a turnover of Rs 200 crore, compared with a net profit of Rs 37.50 crore and revenues of Rs 100 crore in the previous year.

Any ratings assigned to the MCX IPO?
The MCX IPO has come out very strong on the ratings part. Rating agency Crisil awarded MCX initial public offering (IPO) at the highest grade of 5/5. The grade indicates that the fundamentals of the issue are strong, relative to other listed equity securities in India. However, the rating is not an opinion on whether the issue price is appropriate in relation to the issue fundamentals. It is neither a trading recommendation, nor a comment on the future market price or its suitability.
Apart from MCX, Acme Tele Power is the only company to receive the highest rating.
MCX’s profitability and return indicators have been strong in the past 4 years. Growth is likely to moderate in the short-term due to the impact of the commodity transaction tax (CTT), Crisil said.

However, in the medium term, MCX’s strong market position and continuous focus on product innovation would act as growth drivers. Let’s see how this IPO from MCX Exchange performs in the market once it opens up for subscription.

Table of Contents