Multi Commodity Exchange (MCX) on Thursday set a price band of Rs 860 to Rs 1,032 a share for its initial public offering, setting the stage for the first major issue to hit the volatile capital markets in 2012.
Shareholders of MCX are looking to raise up to Rs 663 crore through an offer for sale. The issue will hit the market on February 22 and close on February 24.
"This IPO will be a trend-setter for other commodity exchanges to follow. The listing will take MCX at par with other global exchanges that are listed such as NASDAQ, NYSE Euronext, ICE, CME Group, SGX," MCX vice-chairman Jignesh Shah told reporters at the roadshow in Mumbai.
The offer would comprise sale of about 64.27 lakh shares of Rs 10 each, accounting for a 12.6% stake.
Among the divesting shareholders, Financial Technologies (India) Limited is making offer of 26,43,916 equity shares (5.18%), State Bank of India 21,12,025 (4.14%), Corporation Bank 2,46,175 shares (0.48%), GLG Financials Fund 7,81,508 shares (1.53%), Bank of Baroda 1,05,000 shares (0.21%), Alexandra Mauritius Limited 3,90,754 shares (0.77%) and ICICI Lombard General Insurance Company Ltd 1,48,000 shares (0.29%).
The promoters FTIL currently holds 31.2% stake in MCX, which would come down to about 26% post-IPO.
MCX is also vying for anchor investor in the the public offering of 64.27 lakh shares, or 12.6%, of the total share equity. Anchor investors have a reservation of 15% of the total share under offer in the issue.
MCX, the largest commodity bourse in the country, has more than 70% share in an annual estimated turnover Rs 177 lakh crore for the entire commodity derivatives market.
Globally, MCX is the fifth largest commodity exchange, while it figures among the top two positions in gold and silver segments.
It would be the first exchange in India to go public, putting the country on par with other markets like the US, UK, Japan, Australia, Singapore and Hong Kong.
The equity shares are proposed to be listed on the BSE and the company has received in-principle approval from the BSE for the listing.
"The company is open for listing on the National Stock Exchange (NSE) at a later date," Shah said.
The company said it has decided to have an Exchange Ombudsman for the first time in India subject to necessary approval. The former judge of Bombay High Court, Justice Kamdar, has agreed to be the Exchange Ombudsman.
MCX is also in favour of bringing exchanges under 'Right To Information' (RTI). The Exchange will work with policy makers to develop a framework for RTI policy.
MCX will continue its policy of management continuity without generating legacy by ensuring that generally no MD and CEO can continue beyond two terms, it said.