Will be the first commodity exchange to be listed in India.
The initial public offer (IPO) of Multi Commodity Exchange (MCX) got a go-ahead from the Securities and Exchange Board of India on Monday.
The share sale by MCX is expected to raise an estimated Rs 800 crore, according to market sources. The commodity exchange had filed its draft red herring prospectus on March 31. MCX will see its existing shareholders dilute a 12.6 per cent stake. It will include an offer for sale from Financial Technologies. The National Stock Exchange, one of the stakeholders in MCX, will not dilute its stake.
According to Sebi officials, unlike MCX-SX, which is being regulated by Sebi, MCX was regulated by the Forward Markets Commission (FMC) and the IPO was being brought to fulfil the norms set by the sectoral regulator.
FMC had set a deadline of March 31 for the three commodity exchanges — MCX, the National Commodity and Derivatives Exchange and National Multi-Commodity Exchange -- to restructure capital and bring down the promoter stake to 26 per cent. The deadline was extended, as promoters of the commodity exchanges required more time to scale down. This makes the IPO important for MCX promoters.
On an average, about Rs 50,000 crore worth of commodities are traded daily on the exchanges, in which 80 per cent market share is with MCX. Rating agency Crisil had said MCX had strong fundamentals for the IPO, especially due to its leadership position in the commodity futures market. The IPO was given the highest grade on the scale of one to five.
SO BUY FINACIAL TECH AT 780 LEVEL AND BOOK PROFIT AROUND 840-860 LEVELS