MCX IPO price band looks reasonable: Way2Wealth
Way2Wealth has come out with its research report on Multi Commodity Exchange of India (MCX) IPO. Research firm advised investors to subscribe the issue at upper end of price band of Rs 860-1032/share.
February 22, 2012 / 18:59 IST
Way2Wealth has come out with its research report on Multi Commodity Exchange of India (MCX) IPO. Research firm advised investors to subscribe the issue at upper end of price band of Rs 860-1032/share.
Multi Commodity Exchange (MCX), set up by Financial Technologies (India) Ltd (FTIL) as a demutualised exchange, is the largest commodity exchange in India and 5th largest commodities exchange in the world in terms of volume traded. The objects of the issue is to achieve benefits of listing and provide liquidity to existing shareholders.MCX currently holds a market share of 87% of the Indian commodity futures market, and has more than 2,100 registered members operating through over 296,000 terminals (including computer-to-computer link), across India. MCX offers trading in more than 50 commodities across various classes such as bullion, ferrous and non-ferrous metals, and a number of agri-commodities on its platform.Product and Service Innovation: MCX's strength lies in its ability to introduce new and innovative products. It was the first exchange in India to offer futures trading in steel, crude oil, and almond and first exchange in India to initiate evening sessions to synchronize with the trading hours of global exchanges. MCX has also launched Exchange of Futures for Physicals transactions for the first time in India in 2009.Scalable technology platforms: The technology platform and business model of MCX is highly scalable and have the potential to generate better margins at greater volumes. The current technology infrastructure is sufficient to handle daily trading volumes of up to 10,000,000 trades a day, and have handled a high of 1,867,612 trades in a day. Thus, the overall business model is highly scalable and that it offers potential for economic growth of MCX
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