MCX’s Rs650-750 crore IPO to hit market on 22 February

The Rs650-750 crore initial public offer (IPO) of Multi Commodity Exchange of India (MCX) will hit the capital market on 22 February, making it the first exchange in the country to come out with an IPO.

MCX, India's largest commodity bourse, would be selling about 6.427 million shares, including 2.5 lakh shares reserved for employees, (or 12.6 per cent stake in the company's equity capital) through the IPO.

The bidding for shares will begin on 22 February and close on 24 February, the company said in its Red Herring prospectus. However, MCX is yet to fix the price band for the IPO.

The shares will have a face value of Rs10 each, while the premium would be calculated later. The IPO, however, is expected to value the exchange at over Rs5,000 crore.

Since the issue is an offer for sale by promoters and investors and not an issue of fresh stock, MCX will not be getting the issue proceeds, but only the selling shareholders will get the funds.

Promoter Financial Technologies (India) Ltd and investors like State Bank of India, Corporation Bank, Bank of Baroda, ICICI Lombard General Insurance, GLG Financials Fund and Alexandra Mauritius Ltd are joining the IPO.