MCX re-files for public issue, plans to raise Rs 500-600 cr

Multi Commodities Exchange of India (MCX) has re-filed its draft red herring prospectus (DRHP) with SEBI to tap the capital market with an initial public offering (IPO) of one-crore shares of Rs 5 each for cash.

With an enterprise value of Rs 4,400 crore, analysts expect the issue price to range between Rs 500-600. MCX plans to raise Rs 500 crore to Rs 600 crore through the IPO.

IT infrastructure

Of the total issue on offer, 60 lakh shares will be issued afresh, while 40 lakh will be through ‘offer for sale’. Earlier, the exchange had filed DRHP in mid-2006, but had to defer the issue.

The net proceeds from the issue would be used for expansion and enhancement of the information technology infrastructure of the exchange. The proceeds will also be used to set up a Commodities Ecosystem Infrastructure, for equity investment in a clearing corporation set up by MCX, for strategic investments and acquisitions and also for general corporate and issue expenses, the company said.

For the nine months ended December 31, 2007, MCX net profit declined by 9.12 per cent to Rs 54.75 crore compared with Rs 60.24 crore logged during the same period of the previous fiscal.

Financial Technologies, the promoter, holds 32 per cent stake. NYSE Euronext Inc had bought a five per cent stake for about Rs 220 crore recently, reports The Hindu Business Line.