The company has fixed the issue price band at Rs. 860 - Rs. 1,032 per share.
India’s largest commodity exchange, Multi Commodity Exchange of India Ltd’s (MCX) initial public offer (IPO) is open for subscription. The issue closes on February 24. The company has set the price band at Rs. 860 - Rs. 1,032 per share at a face value of Rs. 10. The shares will be listed on BSE. The issue size stands at Rs. 663 crore at the upper end of the price band. The company is offering 64,27,378 shares.
Rating agency CRISIL has assigned the top grade of 5/5 to the IPO. “MCX’s financial performance in the past three years indicates healthy revenue growth and profitability. Operating revenue has grown at 18.3% CAGR over FY08-10 with EBITDA margin and adjusted PAT margin averaging ~51% and ~36%, respectively. In the medium term, MCX’s strong market position and continuous focus on product innovation will act as growth drivers. In the long term, the introduction of new instruments (like options) and participation by institutional players, once the necessary regulatory reforms take place, are likely to spur growth,” states a CRISIL report.
MCX is promoted by Financial Technologies India Ltd (FTIL). FTIL is listed on BSE, NSE, Ahmedabad Stock Exchange and the Madras Stock Exchange. The promoters- Jignesh Shah, Dewang Neralla, La-Fin Financial Services Private Ltd hold 18.1%, 0.13% and 26.50% respectively in FTIL.
Started in 2003, MCX presently commands 82% market share in the Indian commodity futures market. It has more than 2,100 registered members operating through over 247,000 terminals (including CTCL), across India. MCX offers more than 40 commodities on its platform.
