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MCX IPO Attracts Over 50 Times Subscription

The initial public offer or IPO of India's Multi Commodity Exchange or MCX got oversubscribed by 52.75 times on the closing day of the issue.

The company has received total bids for 2,901.70 lakh equity shares, compared to the issue size of 55.01 lakh equity shares of Rs.10 each at 16.00 hrs. IST Wednesday, as per National Stock Exchange website.

The price band has been fixed between Rs.860 and Rs.1,032 apiece and the issue closes on June 23. MCX will be the first Indian bourse to list its shares on an exchange.

On Tuesday, MCX reserved 926,606 shares at Rs.1,032 a piece for 12 cornerstone investors including Credit Suisse (Singapore) Ltd. and the Kuwait Investment Authority to raise around Rs.95.63 crore.

The commodity exchange is not raising any fund for itself. Some shareholders are selling part of their stakes through IPO that constitutes 12.6 percent of its paid-up capital. These include State Bank of India, Financial Technologies, GLG Financial Fund and Alexandra Mauritius Ltd.

Edelweiss Financial Services Ltd., Citigroup Global Markets India Pvt. Ltd., and Morgan Stanley India Co. Pvt. Ltd. are the book running lead manager to the issue.

MCX is an independent commodity exchange based in India. The exchange offers futures trading in bullion, energy, non-ferrous metals, and a large number of agricultural commodities. It has more than 80% market share in commodity futures trading in India.

by RTT Staff Writer

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