Multi Commodity Exchange (MCX) shares will list on the bourses today. The initial public offer (IPO) was oversubscribed and MCX has fixed the issue price at Rs 1,032 per equity share of face value Rs 10. MCX will become India's first exchange to be listed.
Here are ten facts to know before the shares start trading today.
1) Multi-Commodity Exchange of India (MCX) shares will be listed on the Bombay Stock Exchange (BSE) today.
2) What's new about the listing:
Trading in shares will start from 10 am. There will be an hour long pre-open call auction trade between 9 to 10 am. During this one hour, there will be a price discovery of the IPO.
After 10 am, the stock will have a 20 per cent circuit limit on the equilibrium price.
3) What happens in the pre-open call auction trade:
9-9.45 am: Orders for new listings can be placed /modified /cancelled
9:45- 9:55 am: Order placement /modification /cancellation in call auction will be stopped
9:55- 10:00 am: Buffer period
10.00- 3.30 pm: Continuous Trading for IPOs
4) According to grey market buzz, the shares are likely to list at a premium of Rs 360 per share.
5) The company had raised over Rs 650 crore through an initial public offer last week.
6) MCX will be at par with other international exchanges in New York, London, Paris, Berlin in the West and Singapore, Hong Kong, Tokyo and Sydney in the East which are listed entities.
7) MCX made a public issue of offer for sale of 6,427,378 equity shares of Rs 10 each, which constituted 12.6 per cent of the paid-up equity share capital of Rs 50.99 crore. The IPO received overwhelming response with issue oversubscribed 55 times.
8) The retail portion of the Rs 650 crore IPO was oversubscribed 24.14 times, while qualified institutional buyers (QIBs) and non-institutional investors' portions were oversubscribed by 49.12 and 150.35 times, respectively.
9) Financials: Nine month FY12 total income at Rs 475 crore. Profit after tax stood at Rs 218 crore. Earnings per share was at Rs 42.75 for the period. FY12 EPS is likely to be over Rs 60.
10) Valuation: The stock is being offered at 15-18-times FY 2012 earnings. MCX IPO was priced around 10-30 per cent premium to global peer valuation. Analysts say the premium can be justified due to its higher growth prospects.
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