Sebi approves MCX's IPO, co to sell 12.6 percent stake
MCX will sell 6.43 million shares constituting a 12.6 percent stake in the company through the IPO.The listing would be the first exchange in India to go public and get India at par with other countries with listed exchanges .
Mumbai: The Securities and Exchange Board of India (SEBI) approved an initial public offering by Multi Commodity Exchange (MCX), the country's biggest commodity exchange, on Friday, its spokesman said on Monday.
MCX will sell 6.43 million shares constituting a 12.6 percent stake in the company through the IPO, its chairman had said in March.
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 percent of the paid-up equity share capital of the company.
The offer will be through a 100 percent book-building process, wherein not more than 50 percent 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 percent 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) Ltd, State Bank of India, GLG Financials Fund, Alexandra Mauritius, Corporation Bank, ICICI Lombard General Insurance Company and Bank of Baroda are the selling shareholders in the offer.
Promoter Financial Technologies will sell a 5.18 percent stake, while State Bank of India will sell a 4.14 percent stake.
Listing is expected to ensure the 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
Shares in Financial Technologies (FT) rose nearly 6 percent after unit Multi Commodity Exchange (MCX), received the SEBI's approval for an initial stake stale.
Financial Technologies currently holds 31 percent in MCX and will dilute the stake to 26 percent through the share sale, according to information available on the company's website.
MCX is the sixth largest commodity exchange in the world with No 1 in silver and No 2 ranking in gold. MCX listing would be the first exchange in India to go public and get India at par with other countries with listed exchanges such as the US, Hong Kong, the UK, Singapore, Japan and Australia.
Edelweiss Capital, Citigroup Global Markets India and Morgan Stanley India Company are the book running lead managers to the offer.
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The regulator had argued that since the two are acting in concert, their combined stake should be lower than 5 percent.
Markets regulator SEBI on Friday allowed exchanges to extend the trading time for equity derivatives till 11.55 pm from 1 October
Earlier this year Sebi had allowed the merger of equity and commodity exchanges under its proposed universal exchanges plan from October this year.