Multi Commodity Exchange (MCX) has informed the share market(BSE/NSE) that they have planning to enter capital markets with its public issue (IPO) of —–shares of Rs 10 each. The company has filed a Draft Red Herring Prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI) for the same. The premium to be decided via 100% book building process. The IPO price band has not been decided yet. Multi Commodity Exchange (MCX) is India’s biggest commodity exchange in terms of turnover. India has one of the fastest growing commodity futures markets and had a combined turnover of 77.65 trillion rupees in the FY10 fiscal year.
The offer for sale from the existing shareholders, including promoter Financial Technologies (FT) led by Jignesh Shah, is through a 100% book-building process. Under sectoral regulator Forward Markets Commission’s norms, the anchor investor FT is required to reduce its stake to 26% from the present 31.18%, which it has declared to achieve through the IPO.
The company plans to list the shares on the BSE initially.
This is the second time MCX is filing the prospectus for an IPO. Earlier in 2008, MCX had planned to raise money through an IPO but it could not proceed with the listing due to poor market conditions.Google+