MCX IPO review

MCX is as in common parlance a commodity mandi … an exchange that facilitates people to deals in different commodities.

Here are the details : NSE LINK Here  Chittorgarh Here

Symbol – Series MCX EQ
Issue Period Feb 22,2012 to Feb 24,2012
Post issue Modification Period Feb 25,2012
Issue Size Public offer of 6,427,378 equity shares of Rs. 10
Price Range Rs 860 to Rs 1032/-
Market Lot 6 Equity Shares
Minimum Order Quantity 6 Equity Shares
Maximum Subscription Amount for Retail Investor Rs.200000
IPO Market Timings 10.00 a.m. to 5.00 p.m.
Book Running Lead Manager Edelweiss Financial Services Limited,Citigroup Global Markets India Private Limited and Morgan Stanley India Company Private Limited
Syndicate Member Edelweiss Securities Limited,SMC Global Securities Limited and Sunidhi Securities & Finance Limited
Name of the registrar Karvy Computershare Private Limited

At the upper price band of Rs 1032, P/E works out to18.1 times nine-months annualized consolidated EPS and at the lower price band of Rs 860, P/E stands at 15.1 times. The scrip will be listed only on the BSE …………. Capital Mkts

There are no Exchanges listed in the Markets yet… This is the first one and by its very nature would at this given price and time sound lucrative to a short term trader wanting quick listing gains. <

The price is all right and the main intention for dilution by FT India is to comply with rules and give an exit opportunity to existing shareholders. Listing gains are a certainty.

On a longer term basis i think this will be a good trading bet giving people an opportunity to ride the commodities cycle.

There are multiple reviews online that give it a Strong BUY rating, while the kerb mkt is supposedly giving it a healthy unofficial premium.

Read : Capital Markets,    SP Tulsian

The major risk here is the risk to its margins that are mainly derived from trading volumes. I.e. Policy risk be it arbitrary policy action like the risk of govt banning trade in certain commodities or the risk of  CTT  being imposed in the upcoming budget .  Also the fact that it will only be listed at the BSE is a slight negative in terms of trad-ability.


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