SEBI clears MCX's DRHP for IPO

The Securities and Exchange Board of India (SEBI) has approved the draft red herring prospectus (DRHP) of MCX's (Multi-Commodity Exchange) initial public offering on September 9. It has asked the company to file an offer document with stock exchange/ROC, reports CNBC-Awaaz. SEBI clearance will be valid for 12 months from now.

Leading commodity exchange MCX filed its Draft Red Herring
Prospectus(DRHP) for an initial public offer (IPO) with SEBI of 6,427,378 equity shares of Rs 10 each.

Existing shareholders like Financial Technologies, SBI, GLG Financials Fund, Alexandra Mauritius, Corporation Bank, ICICI Lombard General Insurance and Bank of Baroda will offload some of their exposure through this IPO.

MCX is the sixth largest commodity exchange in the world with No 1 in silver and No 2 ranking in gold. It would be the first exchange in India to go public and get India at par with other countries with listed exchanges such as US, HK, UK, Singapore, Japan and Australia.

MCX paid dividend over 3.15 times that of equity since its inception. It has a diverse shareholding pattern with international names like NYSE Euronext, Fidelity, Merrill and leading Govt institutions like SBI, NABARD, Corporation Bank. FTIL (Promotor of MCX) holds 31% before IPO and will dilute to 26%.

The offer constitutes 12.60% of the paid-up equity share capital of the company.

The offer will be through a 100% book building process, wherein not more than 50% of the net offer shall be allocated on a proportionate basis to qualified institutional buyers, not less than 15% of the issue shall be available to non-institutional bidders and not less than 35% of the issue shall be available to retail individual bidders.

Edelweiss Capital Limited, Citigroup Global Markets India Private Limited and Morgan Stanley India Company Private Limited are the book running lead managers to the Offer.