Ten facts about the MCX IPO
The Budget is scheduled to be tabled on March 16. At present, a deduction of up to Rs 1.5 lakh is available from taxable income towards interest on loan taken for house.
Shares of Financial Technologies (India) Limited traded with strong gains in an up mark today. FTIL stocks were up 5.71% at Rs 911.95 at 1305 hours on the Bombay Stock Exchange. The Sensex traded with over 1.3% gains at 18,395.
Shares of the company have jumped 42.8% in the last one month outperforming the benchmark Sensex that rose 11.75% in the same period.
Financial Technologies is the biggest promoter of Multi Commodity Exchange (MCX), which is slated to be listed on the bourses soon. FTIL currently holds 31.2 per cent stake in MCX.
Here are 10 facts on the MCX initial public offer (IPO).
1) Anchor book will open on 21 February. Retail applications will be accepted from 22 to 24 February. The price band is between Rs 860-1032 per share.
2) The IPO will offer 64,27,378 equity shares of Rs 10 each for sale. At present, total number of shares of MCX are 5,09,98,369 at Rs. 10 each. The offer constitutes 12.60% of the paid-up equity share capital of the company.
3) 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.
4) 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.
5) MCX is promoted by Financial Technologies, State Bank of India, NYSE (Euronext NV), Fidelity, Merrill Lynch, IFCI, Corporation Bank, ICICI, Passport Capital, Union Bank, HDFC Bank, Bank of India, Bank of Baroda, etc. Financial Technologies (India) Limited is divesting 5.18% to the total offer. SBI is divesting 4.14%.
6) MCX will be the first exchange to be listed in India. It ranks first globally in terms of silver trading by volume, second for gold, copper and natural gas, third for crude oil and fifth in terms of overall traded ‘futures’ volume. 95% of the business is generated from metals (bullion and base metals) and energy commodities.
7) The daily average turnover in nine months of FY12 (financial year 2011-12) ended December 2011 has increased by 60% to Rs 514 billion as compared to Rs 321 billion in FY 2011. It has a market share of 87.3% in India (for nine months ended December 31, 2011) according to data maintained by FMC (Forward Markets Commission).
8) The number of contracts in 9MFY12 (in nine months of FY12) ended December 2011 has increased to 289 million contracts as compared to 213 million contracts in FY 2011.
10) Financials: Operating income in 9MFY12 ended December 2011 has increased by Rs 269 million (i.e. 6%) to Rs 4,745 million as compared to Rs 4,476 million in FY 2011. Profit after tax in 9MFY12 ended Dec 2011 has increased by Rs. 473 million (i.e. 27%) to Rs 2,207 million as compared to Rs. 1,734 million in FY 2011. EBITDA (earnings before interest, tax, depreciation and amortization) margin in 9MFY12 ended Dec 2011 has increased to 70.1% as compared to 60.4% in FY 2011. Profit after tax margin in 9MFY12 ended Dec 2011 has increased to 46.5% as compared to 38.7% in FY 2011.