Multi Commodity Exchange of India Ltd (MCX), the country?s biggest commodity exchange, has filed a Draft Red Herring Prospectus with the Securities aand Exchange Board of India (Sebi) on Monday, in connection with the proposed IPO, and plans to sell one crore shares of Rs 5 each, through a 100% book-building issue.
MCX, a subsidiary of Financial Technologies India Ltd, is expected to raise about Rs 500 crore through its proposed Initial Public Offering (IPO) of equity shares.
The money raised through the IPO will be utilised to fund acquisitions and upgrade its technology. The IPO would comprise of a fresh issue of 60 lakh shares and another 40 lakh shares to be sold by Financial Technologies and Corporation Bank, offer for sale route.
MCX offers futures trading on precious metals (bullion), ferrous and non-ferrous metals, energy, agriculture, and industrial commodities.
Recently, FTIL offered a 5% stake in MCX to NYSE Euronext for Rs 240 crores.
This valued the MCX at US$1.1 billion. Following this deal, the FTIL stake in MCX has come down to 32%.
Other key MCX shareholders include SBI, Nabard, the National Stock Exchange (NSE), SBI Life Insurance, Bank of India, Bank of Baroda, Union Bank of India, Corporation Bank, Canara Bank, HDFC Bank, Fidelity, ICICI Ventures, IL&FS, Kotak, Citibank and Merrill Lynch.
MCX had filed for its IPO way back in March 2006 but the issue was defered in the absence of clear-cut guidelines regarding FDI and FIIs limit for commodity exchanges.