The first ever public offer by an Indian exchange, was scheduled to close later this evening and has already emerged as the most successful IPO since the one by Anil Ambani—led Reliance group’s R—Power in January 2008.
By 16.25 hours, the MCX IPO was over subscribed 53 times on robust demand from retail, HNIs and institutional investors and bids have come in for shares worth about Rs 29,600 crore, which is more than 53 times of the offer size.
Investment bankers said that the QIB portion of the offer has been oversubscribed nearly 50 times, the shares reserved for HNIs by over 150 times and the retail segment about 22 times. They noted that the over subscription levels would go further higher as bidding was yet to get over.
In terms of retail investors’ demand, MCX IPO has already become one of the most over subscribed public offers, while its overall subscription level is also probably the highest since R—Power, which got subscribed 73 times in January 2008.
So far, the Mundra Port & SEZ IPO in November 2007 is the most subscribed IPO of Indian market at 115 times.
However, in terms of retail portion, Mundra Port IPO was subscribed 13 times, whole Reliance Power was 13 times.
The last highly successful IPO was of Coal India in October 2010, which got subscribed 15 times overall, but the retail portion was subscribed only about two times.
The shares are allotted on the basis of subscription levels in different segments after all the bids are received.
The bidding began on February 22 and ends today in a price band of Rs 860—1,032 per share for the MCX IPO, which could raise Rs 663 crore at the top end of the price band.
Out of this, shares worth nearly Rs 100 crore have already been allocated to 12 anchor investors and the remainder of about 55 lakh shares are being sold to the public investors.
However, the bids have already in for over 29 crore shares from different investor classes.
The offer was subscribed 91 per cent on the first day itself, while it was fully covered in early morning bidding on the second day.
In an unprecedented development, the retail portion of the IPO was fully subscribed before the other segments and by the second day more than half of the demand had come from retail investors and the rest from others.
The promoters FTIL currently holds 31.2 per cent in MCX, which would come down to about 26 per cent after the IPO.
FTIL, SBI, Bank of Baroda, GLF Financials Fund, Alexandra Mauritius Ltd, Corporation Bank and ICICI Lombard General Insurance are the investors divesting part of their holdings in MCX through the public offer.