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MCX Plans To List On March 9

After a record-breaking investor demand in the initial public offer or IPO of its shares, the Multi-Commodity Exchange or MCX is likely to get listed in the stock market on March 9.

After a record-breaking investor demand in the Initial Public Offer or IPO of its shares, the Multi-Commodity Exchange or MCX plans to allot shares to successful bidders by the middle of this week and get listed on the stock exchanges on March 9, reports said.

Post its listing, MCX would have lakhs of retail investors as its shareholders, unlike other privately-held exchanges where majority shares are owned by a few foreign and private entities.

The IPO got over-subscribed more than 54.13 times with bids worth around Rs.36,000 crore, compared to the targeted proceeds of up to Rs.663 crore through sale of 64.27 lakh shares.

Out of this, over nine lakh shares were sold to 12 anchor investors at Rs.1,032 apiece and fetched around Rs.96 crore, a day prior to the beginning of the three-day bidding for shares in the IPO on February 22.

MCX had set a price band of Rs.860-Rs.1,032 per share for the IPO, and the final price was fixed at the top end, considering the strong demand witnessed for the offer.

The first ever public offer by an Indian exchange has also emerged as the most successful IPO in about four years.

In terms of demand from retail investors, the MCX IPO is said to have surpassed all previous records, as the shares reserved for the retail shareholders were over-subscribed nearly 24 times -- higher than any major public offer so far. The previous highly successful IPO was of state-run Coal India in October 2010, which got subscribed 15 times overall, but the retail portion was subscribed only around two times.

The share sale in another public sector behemoth ONGC through a one-day auction last week got subscribed only about 98 percent only after state-run insurer Life Insurance Corporation of India (LIC) is said to have pitched a large majority of bids.

Post IPO. The promoters Financial Technologies of (India) Ltd. (FTIL) currently hold 31.2 percent in MCX, which would come down to around 26 percent.

FTIL, SBI, Bank of Baroda, GLF Financials Fund, Alexandra Mauritius Ltd., Corporation Bank and ICICI Lombard General Insurance were the investors divesting part of their holdings in MCX through the IPO.

by RTT Staff Writer

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