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MCX get Sebi clearance. Should launch IPO within 12-months


MCX get Sebi clearance
The capital market regulator of India, Securities and Exchange Board of India (Sebi), has cleared Draft Red Herring Prospectus (DRHP) for the Multi Commodity Exchange of India (MCX) IPO on September 9, 2011, according to reports.

This clearance by SEBI is valid for 12 months. Now the MCX will will a file its offer document with stock exchange or the Registrar of Companies (RoC), according to news reports.


On March 31, 2011, MCX had filed its DRHP with SEBI for an IPO of 6,427,378 equity shares. The value of each share was Rs 10 each. Existing shareholders will reduce their holding and the number of shares that they own.

Qualified Institutional Buyers (QIBs) will not be given more than 50% of the open offer. A minimum of 15% will be for non-institutional bidders and minimum of 35% will be given out to retail individuals.

Currently the exchange's shareholders include the name NYSE Euronext, Fidelity, Merrill and leading Govt institutions like SBI, Nabard, Corporation Bank.

Financial Technologies (India) Limited, State Bank of India, GLG Financials Fund, Alexandra Mauritius, Corporation Bank, ICICI Lombard General Insurance Company and Bank of Baroda are the selling shareholders in the offer. FTIL (Promoters of MCX) holds 31% before IPO. This will dilute to 26% post IPO.

MCX is the 6th largest commodity exchange in the world. It holds the position of No. 1 in silver and No. 2 ranking in gold. It would be the first exchange in India to go public and get India at par with other countries with listed exchanges such as US, HK, UK, Singapore, Japan and Australia.

Edelweiss Capital, Citigroup Global Markets India and Morgan Stanley India Company Private Limited are the book running lead managers to the offer.


VIEW: It would be a prudent choice for the investors to buy the shares of this exchange at reasonable price. We will update you once the prospectus is released for the investors to go through.

Story first published: Monday, September 12, 2011, 16:23 [IST]
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