MCX IPO – Details, Fundamentals, Allotment status
Multi Commodity Exchange of India (MCX), country’s largest commodity exchange, is going to open its initial public offering (IPO) of 64.27 lakh equity shares (dilution of 12.6% post issue) next week. The IPO will hit the market on February 22 and close on February 24.
The offer would comprise sale of about 64.27 lakh shares of Rs 10 each, accounting for a 12.6% stake. Multi Commodity Exchange of India will become the first Indian bourse to list its shares on an exchange. Multi Commodity Exchange of India is the largest commodity bourse in the country. MCX has more than 70% share in an annual estimated turnover Rs 177 lakh crore for the entire commodity derivatives market.
MCX is the fifth largest commodity exchange globally.
The offer will be through a 100% book building process, wherein not more than 50% of the net offer shall be allocated on a proportionate basis to qualified institutional buyers, not less than 15% of the issue shall be available to non-institutional bidders and not less than 35% of the issue shall be available to retail individual bidders.
The book running lead manager to the issue are Edelweiss Financial Services Limited, Citigroup Global Markets India Private Limited and Morgan Stanley India Company Private Limited. Karvy Computershare Private Limited is the registrar.
Up to 250,000 shares have been reserved for eligible employees in the IPO. The shares will be listed on the Bombay Stock Exchange.
Rating agency CRISIL assigned a grade 5/5 to the IPO, indicating strong fundamentals.
MCX is promoted by Financial Technologies, State Bank of India, NYSE (Euronext NV), Fidelity, Merrill Lynch, IFCI, Corporation Bank, ICICI, Passport Capital, Union Bank, HDFC Bank, Bank of India, Bank of Baroda, etc. Financial Technologies (India) Limited is divesting 5.18% to the total offer. SBI is divesting 4.14%.
Among the divesting shareholders, Financial Technologies (India) Limited is making offer of 26,43,916 equity shares (5.18%), State Bank of India 21,12,025 (4.14%), Corporation Bank 2,46,175 shares (0.48%), GLG Financials Fund 7,81,508 shares (1.53%), Bank of Baroda 1,05,000 shares (0.21%), Alexandra Mauritius Limited 3,90,754 shares (0.77%) and ICICI Lombard General Insurance Company Ltd 1,48,000 shares (0.29%).
The promoters FTIL currently holds 31.2% stake in MCX, which would come down to about 26% post-IPO.
MCX will be the first exchange to be listed in India. It ranks first globally in terms of silver trading by volume, second for gold, copper and natural gas, third for crude oil and fifth in terms of overall traded ‘futures’ volume. 95% of the business is generated from metals (bullion and base metals) and energy commodities.
The daily average turnover in nine months of FY12 (financial year 2011-12) ended December 2011 has increased by 60% to Rs 514 billion as compared to Rs 321 billion in FY 2011. It has a market share of 87.3% in India (for nine months ended December 31, 2011) according to data maintained by FMC (Forward Markets Commission).
The number of contracts in 9MFY12 (in nine months of FY12) ended December 2011 has increased to 289 million contracts as compared to 213 million contracts in FY 2011.
Operating income in 9MFY12 ended December 2011 has increased by Rs 269 million (i.e. 6%) to Rs 4,745 million as compared to Rs 4,476 million in FY 2011. Profit after tax in 9MFY12 ended Dec 2011 has increased by Rs. 473 million (i.e. 27%) to Rs 2,207 million as compared to Rs. 1,734 million in FY 2011. EBITDA (earnings before interest, tax, depreciation and amortization) margin in 9MFY12 ended Dec 2011 has increased to 70.1% as compared to 60.4% in FY 2011. Profit after tax margin in 9MFY12 ended Dec 2011 has increased to 46.5% as compared to 38.7% in FY 2011.
The Multi Commodity Exchange of India MCX IPO will hit the market on February 22 and close on February 24. IPO price band has been fixed at Rs 860 to 1,032 rupees a share.
Minimum lot will be 6 shares @1032=6192/- only. In this IPO individual retail investor can apply up to maximum RS. 2 lakhs accordingly to slab.
Open Date 22-Feb-2012
Close Date 24-Feb-2012
Allotment Date 05-Mar-2012
Refund Date 06-Mar-2012
Listing Date 07-to-09-Mar-2012 (Expected)
It is expected that IPO allotment will be going to happen on March 05, 2012 and refund on March 06, 2012. Shares of MCX will list its equity shares on exchanges around March 07 to March 09, 2012.
Check Multi Commodity Exchange of India MCX IPO Allotment Status at http://mis.karvycomputershare.com/ipo/
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