Multi Commodity Exchange of India (MCX), the country’s largest commodity bourse and the first Indian exchange to get listed, had a blockbuster debut on Friday, with its shares rising over 38 per cent. The share price of the firm closed at Rs 1,297.05, up 25.68 per cent on the BSE on Friday.
MCX share price jumped to Rs 1,426 a unit in the initial hours of trading. At this price, the company is valued at Rs 7,272 crore, nearly double its parent company Financial Technologies (India) Ltd. Shares of Financial Technologies were trading on the BSE at Rs 846 a unit at 11:05 am, down 2.05 per cent, giving it a market capitalisation of Rs 3,900 crore.
Share price of MCX also started correcting and reached Rs 1,339 (at 11:08 am) as sell orders outweighed buy orders 2.7 times on profit booking.
MCX raised more than Rs 663 crore in its initial public offering (IPO), which was closed last month at the upper end of the price band of Rs 860-Rs 1,032. The issue was oversubscribed 54.13 times with the retail portion being oversubscribed 24.14 times, while qualified institutional buyers (QIBs) and non-institutional investors’ portions were also oversubscribed by 49.12 and 150.35 times, respectively.
Besides being the first bourse in India to get listed, the issue was also unique as it comprised only sale of shares and no money was being raised for the company. The issue involved sale of 12.6 per cent stake by promoter shareholder Financial Technologies. Others who sold their stake included the State Bank of India (Equity), GLG Financials Fund, Alexandra Mauritius Ltd, Corporation Bank, ICICI Lombard General Insurance Company and Bank of Baroda.
The issue allowed Financial Technologies to reduce its stake in MCX to 26 per cent, thus meeting the guidelines of the commodity markets’ regulator Forward Markets Commission (FMC) on the shareholding for the national commodity exchange.
Edelweiss Financial Services, Citigroup Global Markets and Morgan Stanley India were the book running lead managers to the offer.
The total value of the commodity futures contracts traded on the MCX exchange in the nine months ended December 31, 2011, stood at Rs 11,980,689 crore. According to FMC data, this represented 87.3 per cent of the Indian commodity futures industry in terms of the value of commodity futures contracts traded during the period.
Other shareholders of MCX include Passport Capital, Euronext, Merrill Lynch, IFCI, NABARD, Intel Capital and New Vernon Private Equity, besides ad-for-equity investors HT Media and Bennett, Coleman & Co, as well as ICICI Venture and Kotak Private Equity, among others.