As expected, the recent IPO floated by Multi Commodity Exchange (MCX) subscribed 54 times. MCX offered 64.27 lakh shares and thereby raised about Rs.663 crore at higher end of the price band of Rs.860-1032/share
The promoter, Financial Tech, offered shares to cut stake from 31.18% to 26% in order to meet statutory requirement. SBI, Bank of Baroda, Corporation Bank, ICICI Lombard were the other shareholders who offered shares to reduce their stake.
MCX is India’s number 1 commodity exchange with 82% market share. It covers a total of 49 commodity futures, notably bullion, metals, energy and agriculture products.
MCX is operating around 2.96 lakh terminals to cater to the needs of more than 2153 members.
The shares of MCX rose 38% on the first day of listing on Friday (9th March 2012). On the BSE, MCX shares opened at Rs.1,387 (against the offer price of Rs.1032) and settled at Rs.1,297 after climbing to Rs.1426. Around 60.18 lakh shares were traded on the BSE and 79.41 lakh shares on the NSE.
MCX had announced its listing only on the BSE. However, NSE too allowed trading in MCX shares under its rule known as ‘permitted to trade’. This was done to permit NSE brokers to trade in MCX shares.
MCX shareholders list contains lakhs of retail investors. This is not the case with other exchanges where majority shares are owned by few.
Experts are of the opinion that MCX shares will perform well under all market conditions, as fluctuation of commodity prices may not influence their performance considerably. Hence, one can safely accumulate MCX shares at every dip and reap handsome gains in the coming months.