SEBI clears MCX's DRHP for proposed IPO

Mumbai, Sep 12: Leading commex, Multi Commodity Exchange of India (MCX) on Sep 12 said Securities and Exchange Board of India (SEBI) has cleared Draft Red Herring Prospectus for its proposed IPO on Sep 9.

The SEBI clearance is valid for 12 months from now.

The exchange has been asked to file offer document with stock exchange/ROC, a senior company official said here.

MCX had filed its DRHP with SEBI in connection with an Initial Public Offering (Offer) of 6,427,378 equity shares of Rs 10 each through an offer for sale by existing shareholders.

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

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

The exchange has diverse shareholding pattern with international names like NYSE Euronext, Fidelity, Merrill and leading Govt institutions like SBI, Nabard, Corporation Bank.

Financial Technologies (India) Limited, State Bank of India, GLG Financials Fund, Alexandra Mauritius Limited, Corporation Bank, ICICI Lombard General Insurance Company Limited and Bank of Baroda are the selling shareholders in the offer. FTIL (Promotors of MCX) holds 31 per cent before IPO and will dilute to 26 per cent.

Listing is expected to ensure highest level of shareholder and public scrutiny, corporate governance and transparent trade practices, the official said.

The exchange paid dividend over 3.15 times that of equity since its inception.

MCX is the 6th 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.

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.

PTI