Financial Daily from THE HINDU group of publications
Wednesday, Sep 28, 2005

News
Features
Stocks
Port Info
Archives
Google

Group Sites

Home Page - Commodity Exchanges
Markets - IPOs


MCX plans Rs 330-cr IPO

Our Bureau

MCX will be the world's third commodity exchange and India's first exchange to be listed.

Mumbai , Sept. 27

MULTI Commodity Exchange of India Ltd (MCX) has decided to go in for an initial public offering (IPO). It will be the first commodity exchange in the country to be listed and third in the world.

Mr Jignesh Shah, Managing Director and Chief Executive Officer, MCX, one of the three multi-commodity exchanges in the country, said that the size of IPO would be around $75 million (Rs 330 crore).

The MCX board approved the IPO plan on September 24. The company has appointed Citigroup, DSP Merrill Lynch and Kotak Mahindra as merchant bankers to the issue, Mr Shah told newspersons here on Tuesday.

The plan is to come out with the issue in early-2006. "We expect large-scale participation from retail and institutional investors and will announce the IPO details after necessary regulatory compliances," Mr Shah said.

"After Chicago Mercantile Exchange of the US and Sydney Futures Exchange, Australia, MCX will be the world's third commodity exchange and India's first exchange to be listed," he said.

"These two exchanges command a price-earning ratio of around 40 and their growth is 10 per cent a year". He, however, declined to comment on the pricing of the issue, as it will be decided by merchant bankers.

IPO to fund expansion: The IPO is aimed to raise funds for the expansion plans of the exchange. This includes investment in warehouses and technology, Mr Shah said.

The exchange would grow at 100 per cent rate in the next five years and would offer many more commodities and their derivatives in the near future, he said.

The exchange, with a paid-up capital of Rs 37 crore, is promoted by Financial Technologies India Ltd (FTL). The stock price of FTL was quoted at Rs 1,310 on Tuesday on BSE.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Tata Safari Dicor Punjab National Bank

Stories in this Section
India's vote against Iran will not derail pipeline project, says Aiyar


MCX plans Rs 330-cr IPO
Changing the old face of Mumbai
Haryana not to allow some BPOs to hire women on night shifts
Sensex ends at new high of 8,525; volatility continues
No widespread probe; manipulation will not be allowed: Chidambaram
Sept 30 is deadline set for telecom officers to get absorbed in PSUs


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line