Ipo Note : Multi Commodities Exchange

IPO Note- Multi Commodity Exchange of India Ltd

FNMT Assignment

Submitted by |

11504 | Anoop R |

11522 | Gokul Krishna J |

11527 | Isha Pandey |

11539 | Neha B |

11340 | Sidharth Panigrahi |

11554 | Vandna soni |

Multi Commodity Exchange of India Ltd

Issue details:

Issue opens | 22-Feb-12 |

Issue closes | 24-Feb-12 |

Equity offerings (in mn shares) | 6.4 |

Face value | 10 |

Price Band | 860.0 - 1032.0 |

Issue size in bn | 5.5 -6.6 |

Max application | 192 |

Issue type | 100% book building |

Listing at | BSE, NSE |

IPO grading | CRISIL - 5/5 |

Registrar to the Issue | Karvy Computershare |

Shareholding pattern (%)

| Pre Issue | Post Issue* |

Promoter | 31.2 | 26 |

Non Promoter | 68.8 | 74 |

Issue Structure (in mn no. shares)

Issue size | 6.43 |

Of which Employee reservation | 0.25 |

Break-up of net issue to public: | |

QIB's portion (min) | 3.09 |

Non-institutional portion (min) | 0.93 |

Retail Portion (min) | 2.16 |

Break- up:

Rating : Subscribe

Key highlights:

* MCX is a dominant player with 88% market share in the Indian commodities market. It enjoys virtual leadership in silver, gold, copper, natural gas and crude oil globally.

* Innovation in products and services like introduction of EFPs, evening sessions to synchronize with the trading hours of other major international exchanges, introduction of MCXCOMDEX, India’s first real time composite commodity futures index will help MCX to have sustainable growth.

* The rising interest of participants in the commodities market is leading to robust turnover for MCX. This turnover growth has supported transaction fees to grow at 37% CAGR to 349.5 crore, over 2011-12. MCX’s operating revenue has grown at a CAGR of 32% over 2009, with major growth coming from transaction fees.

* The technology platform and business model is highly scalable and sufficient to support 10mn trades in a day. Thus, MCX has the...