India's largest commodity bourse Multi Commodity Exchange or MCX will hit the capital market on February 22 to raise around Rs.650-Rs.750 crore. It would be the first exchange in India to go public, putting the country at par with other markets, such as the US, UK, Japan, Australia, Singapore and Hong Kong.
The issue will close on February 24. The commodity exchange has received regulatory approval for the launch of its initial public offering or IPO.
While the price band for the IPO is yet to be fixed, sources said the IPO size could raise Rs.650-Rs.750 crore. This could also be the first IPO of the year 2012. The IPO could give the exchange the market value of over Rs.5,000 crore.
The offer would comprise of sale of around 64.27 lakh equity shares of Rs.10 each, of this 2.5 lakh shares will be reserved for employees. The offer will account for 12.6 percent stake in the company.
Besides the promoter Financial Technologies (India) Ltd. (FTIL) 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.
MCX said in its RHP that the IPO had 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.
Last week, MCX Chairman Venkat Chary said the company's IPO would be game changer in the stock market, and would lift the sentiment from the current slump, adding that . "This IPO will lift all the boats."
The promoters FTIL currently holds 31.2 percent stake in MCX, which would come down to around 26 percent post IPO.
MCX, the largest commodity bourse in the country, has more than 70 percent share in an annual estimated turnover Rs.177 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.
MCX clocked a net profit of Rs.176 crore on total income of Rs.448 crore for the fiscal year ended March 31, 2011. In the current fiscal, it has reported a net profit of Rs.218 crore on total income of Rs.474 crore for the nine-month period ended December 31 last year.
by RTT Staff Writer
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