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MCX to raise about Rs 660 cr via IPO; price band fixed at Rs 860-1032/share

16 Feb 2012
The Multi Commodity Exchange Ltd (MCX), India's biggest commodity exchange by turnover, has set the price band of Rs 860 to Rs 1,032 per share for initial public offering of 6,427,378 equity shares. The company aims to raise as much as Rs 660 crore billion through the offering.

MCX’ IPO is first IPO of the year and it is believed the offering will boost the dead IPO market in India. With this IPO, MCX will become the first Indian bourse to list its shares on an exchange.

The objects of the issue are to achieve the benefits of listing on the BSE and to carry out the sale of 6,427,378 Equity Shares. The company stated in a prospectus filed to SEBI that the listing of the Equity Shares will enhance the brand name and provide liquidity to the existing shareholders. Listing will also provide a public market for the Equity Shares in India. Further, MCX also reported the company will not receive any proceeds from the Offer.

The company is the leading commodities exchange in India based on value of commodity futures contracts traded. According to data maintained by the FMC, the total value of commodity futures contract traded on the exchange in 2011, 2010 and 2009 was Rs 98,415.03 billion, Rs 63,933.03 billion and Rs 5,880.95 billion respectively. MCX has more than 80 per cent share in Indian commodity futures industry in terms of the value of commodity futures contracts traded.
Source: Dion Global   Type: IPO Related