The MCX or Multi Commodity Exchange of India which is the leading commodity exchanges of India, has received approval from SEBI for it IPO and is now planning to come out with its Initial Public Offering or IPO. Once listed, MCX will be the first stock exchange in India which will have the prriviledge of being a listed stock exchange company. The approval from SEBI for the MCX IPO was received on date 9th September 2011.
In this article, we will look at the Review, Analysis and Details of the MCX IPO.
MCX IPO: Review Analysis & Details
Some basic details first about the MCX IPO, which are available as of now: Image sourced as screenshot from official website of MCX
- The size of MCX IPO is Rs. 661 Crores at the top end of the price band.
- Being a stock exchange, it derives its income from transaction fee, subscription fee, brokerage fee and similar related modes of a typical stock exchange.
- It is learnt to be the largest commodity exchange in India and sixth largest commodity exchange in the world
What is the issue size of the MCX IPO?
The issue size of MCX IPO is Rs. 661 Crores.
What is the price band of MCX IPO?
The price band for MCX IPO is Rs. 860 to Rs. 1032. Final price will be decided through 100% book building process. Face value of each share will be at the standard INR Rs. 10 per share
How many shares will be sold in the MCX IPO?
The total no. of shares to be sold through this IPO is around 64.3 lakh equity shares - that 6.43 million shares. That makes around 12.6% of the total equity of the company.
What are the IPO dates for MCX IPO
The IPO dates for MCX IPO are from February 22, 2012 to 24 February 2012.
How will the capital raised by MCX IPO be used?
MCX is currently held by many financial institutions. Among them, some like FTIL or Financial Technologies, GLG Financials Fund, State Bank of India, Alexandra Mauritius, Corporation Bank, ICICI Lombard General Insurance and Bank of Baroda are selling a part of their shares through this IPO.
FTIL which is the largest stockholder currently holding 31% shares will sell out a large portion of its holding and post IPO its share will come down to 26%.
How the capital raised through this IPO will be used is not known as of now - will be updated as soon as the details are available:
See List of All IPO Articles here
Any ratings given to MCX IPO?
Yes - CRISIL, the rating agency, has assigned a grade of 5 out of 5 to the MCX IPO, which indicates the best possible rating any company can get.
What are the analysts recommendations and business results for MCX IPO?
Stock exchange business is known to be profitable - they make money even if the market participants trading on their markets loose. So it is considered to be a very safe business. However, one must not forget the intense competition that is going on even in the stock exchange space. There are lots and lots of stock exchanges coming up in India, that too in the space of commodity trading.
A stock exchange can continue to be in business only if it provides a reliable platform for trading and manages to capture bulk of trading activities onto it. MCX curently has the lead position in commodity trading in India. Backed by the largest shareholder, Financial Technologies, it is well placed to scale upon the high volume of trading that is expected to expand in near future.
Apart from that, there are other requirements like lauchning of innovative products like e-gold, e-silver, etc. which any stock exchange will have to continously come up with. Same goes with launching of various indices, like sector specific, country-region specific indices, which form the basis of other financial products like ETF's and the exchange derives licence fee from the asset management companies which launch such products.
It is also learnt to have global as well as domestic alliances with other stock exchanges like London Metal Exchange, TAIFEX - Taiwan Futures Exchange, Baltic Exchange, New York Merchantile Exchange, etc.
Currently as well, MCX is the known to be the largest stock exchange for silver contracts trading in the world. For gold contract trading, it is the second largest stock exchange in the world.
Not all countries in the world have stock exchanges listed as companies. USA, UK, HongKong, Singapore, Australia and Japan are the only countries at present which have allowed stock exchanges as listed entities. India will soon join the league once the MCX IPO opens and MCX shares start trading.
See Latest Update: MCX IPO Grey Market Premium at 30% - February 18, 2012
Edelweiss Capital, Citigroup Global Markets India and Morgan Stanley India are the BRLM or Book Running Lead Manager to the MCX IPO
1 comment:
Nice blog very informative, lots of information about MCX AND COMMODITY TIPS ,it is really helpful to me thanks
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