Guess which index is surging on MCX' stellar 35% listing

Multi Commodity Exchange (MCX) shares jumped by more than 37 percent on their first day of listing, making it one of the first few IPOs that have reported such a robust performance. In fact the stock market this morning and saw its price soaring past Rs 1,400 level within minutes of listing.

Firstpost decided to do a quick analysis of the company’s share holding patterns.

Promoter entity, Financial Technologies - a 26 percent stakeholder - jumped almost 2 percent in pre-opening trade. Domestic Institutions is the other major stakeholder with a 26.28 percent stake.

Many other foreign institutional investors have a stake in the company. The largest share holding pattern is by FID Funds (Mauritius) with a 5 percent stake, Passport Capital LLC, Merril Lynch Holdings (Mauritius), Euronext NV, Aginyx Enterprises and IFCI hold a 4.79-4.9 percent each, respectively.

Bankex surged with the listing of MCX and also on hopes of CRR cut ahead of the RBI’s policy meet on 15 March.

Domestic banks like Corporation Bank which has a 3 percent stake is up 2.9 percent, Union Bank of India which owns 1.07 percent stake is trading higher by 1.9 percent. State Bank of India that holds 1.04 percent stake is up 3 .2percent, while Canara Bank with a 1.03 stake is up 2.8 percent and Bank of India (1.03) is up 3 percent and HDFC Bank (1.03) has gained 1.47 percent.

Domestic institutions like the National Bank for Agriculture and Rural development (3.06 percent) and the National Stock Exchange (2.45 percent) also hold a stake in the company.

Bennett Coleman also has a 2.24 percent.

In the pre-open bidding, the shares attracted a premium of over 40 per cent from its IPO price of Rs 1,032 a share and touched a high of Rs 1,450.

Based on a new price-discovery mechanism, followed for the first time in MCX listing, the shares finally opened normal trade at the BSE at Rs 1,387- a premium of 34 per cent, and went on to gain further ground to a high of Rs 1,420.At the NSE, the shares opened at Rs 1,408 and touched a high of Rs 1,428.25 by 1015 hours.

Angel Broking has a buy rating on the stock and current levels and expects a 20 percent in the stock in the next 20 months. The broking house also thinks the MCX IPO has the potential.

Emkay Global is also positive on the MCX IPO. In an interview with CNBC-TV18, Krishna Kumar Karwa, MD, Emkay Global Financial Services said the exchange’s business model is robust and is a good long-term investment “with the kind of market share that they have in the precious metals, base metals and the energy segments of the commodity market.”

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