IPO Worth Investment in India

IPO worthy of investment in India has arrived and it is none other than Multi Commodity Exchange of India Ltd which has got an IPO rating of 5 which is a very rare scenario in present volatile environment.

Incorporated in 2003, Multi Commodity Exchange of India Ltd (MCX) is India based electronic commodity futures exchange. MCX provides online trading facility along with clearing and settlement operations for commodity futures across India. The demutualised Exchange set up by Financial Technologies (India) Ltd (FTIL).

MCX is the largest commodity futures exchange in India and holds market share of around 80%. MCX allows trading in more than 50 commodities across sectors like bullion, metals, energy, weather, and agricultural products. MCX offers more than 40 commodities across various segments such as bullion, ferrous and non-ferrous metals and a number of agri-commodities on its platform. The Exchange is the world's largest exchange in Silver, the second largest in Gold, Copper and Natural Gas and the third largest in Crude Oil futures, with respect to the number of futures contracts traded.

MCX has more than 2000 registered members operating through over 100,000 trader work stations, across India. MCX emerged as the sixth largest exchange in the world.

Issue Detail:

  »»  Issue Open:
  »»  Issue Type: 100% Book Built Issue IPO
  »»  Issue Size: 6,427,378 Equity Shares of Rs. 10
  »»  Issue Size: Rs. [.] Crore
  »»  Face Value: Rs. 10 Per Equity Share
  »»  Issue Price: Rs. - Rs. Per Equity Share
  »»  Market Lot:
  »»  Minimum Order Quantity:
  »»  Listing At: BSE, NSE

The company can be contacted at below address

Registered Office :      Exchange Square,      Suren Road, Chakala,      Andheri (East), Mumbai 400 093
Phone: (91 22) 6731 8888
Fax: (91 22) 6649 4151
Email: mcxofs@mcxindiacom
Website: http://www.mcxindiacom

Registrar of the Issue

Karvy Computershare Private Limited
Karvy House, 46, Avenue 4, Street No. 1,
Banjara Hills, Hyderabad - 500 034
Andhra Pradesh, India

Phone: +91-40-23312454
Fax: +91-40-23311968
Email: mailmanager@karvycom
Website: http://karisma.karvycom

Book Running Lead Manager(s)

• Citigroup Global Markets India Private Limited
• Edelweiss Capital Limited
• Morgan Stanley India Company Pvt Ltd

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Notes for Issue

In case of revision in the Price Band, the Bid/Issue Period will be extended for three additional days after revision of the Price Band subject to the Bid /Issue Period
not exceeding 10 working days. Any revision in the Price Band and the revised Bid /Issue Period, if applicable, will be widely disseminated by notification to the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited, by issuing a press release, and also by indicating the change on the websites of the Book Running Lead Managers and at the terminals of the Syndicate.

In terms of Rule 19(2)(b) of the Securities Contract Regulation Rules, 1957, this being an Issue for less than 25% of the post Issue equity share capital, the Issue is being made through the 100% book building process under the SEBI Guidelines wherein at least 60% of the Net Issue shall be allocated on a proportionate basis to Qualified Institutional Buyers (“QIBs”). 5% of the QIB Portion shall be available for allocation to Mutual Funds only and the remaining QIB Portion shall be available for Allotment to the QIB Bidders including Mutual Funds, subject to valid Bids being received at or above the Issue Price. If at least 60% of the Net Issue cannot be allocated to QIBs, then the entire application money will be refunded forthwith. Further, not less than 10% of the Net Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 30% of the Net Issue shall be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price.

RISK IN RELATION TO THE FIRST ISSUE
This being the first issue of Equity Shares of the Company, there has been no formal market for the Equity Shares of the Company. The face value of the shares is Rs.
5 and the Floor Price is [•] times of the face value and the Cap Price is [•] times of the face value. The Price Band (as determined by the Company and the Selling Shareholders in consultation with the book running lead managers (“BRLMs”) on the basis of assessment of market demand for the Equity Shares by way of book building) should not be taken to be indicative of the market price of the Equity Shares after the Equity Shares are listed. No assurance can be given regarding an active and/or sustained trading in the Equity Shares or regarding the price at which the Equity Shares will be traded after listing.

GENERAL RISKS
Investments in equity and equity-related securities involve a degree of risk and investors should not invest any funds in this Issue unless they can afford to take the  risk of losing their investment. Investors are advised to read the risk factors carefully before taking an investment decision in this Issue. For taking an investment decision, investors must rely on their own examination of the Company and the Issue including the risks involved. The Equity Shares offered in the Issue have not been recommended or approved by the Securities and Exchange Board of India (“SEBI”), nor does SEBI guarantee the accuracy or adequacy of this Draft Red Herring Prospectus. Specific attention of the investors is invited to the section titled “Risk Factors” on page X of this Draft Red Herring Prospectus.

IPO GRADING
This Issue has been graded by [●] as [●], indicating [●]. For details see the section titled “General Information” beginning on page 12 of this Draft Red Herring Prospectus

ISSUER’S AND SELLING SHAREHOLDERS’ ABSOLUTE RESPONSIBILITY
The Company and the Selling Shareholders having made all reasonable inquiries, accept responsibility for and confirm that this Draft Red Herring Prospectus contains all information with regard to the Company and the Issue, which is material in the context of the Issue, that the information contained in this Draft Red Herring Prospectus is true and correct in all material aspects and is not misleading in any material respect, that the opinions and intentions expressed herein are honestly held and that there are no other facts, the omission of which makes this Draft Red Herring Prospectus as a whole or any of such information or the expression of any such opinions or intentions misleading in any material respect.

LISTING
The Equity Shares offered through this Draft Red Herring Prospectus are proposed to be listed on the National Stock Exchange of India Limited and the Bombay
Stock Exchange Limited. [●] shall be the Designated Stock Exchange. We have received in-principle approval of the National Stock Exchange of India Limited and
the Bombay Stock Exchange Limited for the listing of the Equity Shares pursuant to their letters dated [•] and [•], respectively.