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Posted by on Feb 27, 2012 in Business | 0 comments

MCX IPO Oversubscribed 54 times – Commodities Next Big Bet?

   Initial Public Offering (IPO) of Multi-Commodity Exchange (MCX), India’s leading Commodity Exchange, was oversubscribed 54 times when the book building process was closed on Friday.

   It has attracted bids more than 36,000 Crores.The bidding process which began on February 22 in a price band of Rs 869-1,032 per share could help the exchange raise up to Rs. 663 Crores at the higher end of the price band.

  The company has zero debt in its balance sheet and has a very strong fundamentals. Most brokering firms were positive about the offer. The stock prices is expected to reach Rs.1,300 in mid term.

   The IPO had many firsts to its credit. Besides being the first IPO in 2012, it was the first ever public offer by an Indian Exchange. Following the SEBI regulations for mandatory disclosures, the merchant bankers have started disclosing the track records of the IPOs managed by them in the past to help investors take informed decision.

   This IPO is expected to renew the interest in the primary market for FY13. The last successful IPO in the Indian capital markets was when Coal India Limited was listed in 2010.

   For investors who missed this opportunity, watch out for the huge disinvestment plans that the government has for FY13. Some of the public sector giants like ONGC, BHEL and NBCC  are due to come up with follow up offers later in the year.

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Deepesh Kothari

Horntail is a Marketing consultant by profession and loves watching Indian movies. A F1 freak and a crazy ARRahmanic. He writes on business and sports on News@indiandragon. Catch him @deepesh_kothari

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