• News
  • Columns
  • Interviews
  • BW Communities
  • Events
  • BW TV
  • Subscribe to Print
BW Businessworld

MCX Soars On Market Debut, Fuels Optimism

Photo Credit :

The Multi Commodity Exchange (MCX) shares jumped 38 per cent on their debut on Friday, buoyed by strong growth prospects for the country's first listed bourse amid a revival in share offerings after a market rebound.

MCX, which last month launched the first major IPO in the Indian market in seven months, had priced the issue at 1,032 rupees - the upper end of the price band - raising Rs 660 crores.

The IPO was subscribed more than 54 times.

MCX shares were trading at 1,351.50 rupees at 11:36 am, up nearly 31 per cent in a Mumbai market that was up 1.8 per cent. The stock earlier touched a high of 1,428.55 rupees.

The exchange's majority shareholder Financial Technologies India Ltd and investors including state-controlled State Bank of India and Bank of Baroda sold part of their holdings in the IPO.

Indian companies raised roughly Rs 44,910 crore through share sales last year, down from about Rs 114,770 crore in 2010, as weak market conditions forced many companies including state-run Oil and Natural Gas Corp to put off their plans.

Strong demand for MCX shares as well as some large block deals last month have bolstered expectations for more share sales in India this year, mainly helped by a rebound in the stock markets.

India's benchmark stock market index has risen 13 per cent so far this year, after falling roughly 25 per cent last year.

Morgan Stanley, Citigroup Inc and India's Edelweiss Capital were the bookrunners for the MCX IPO.

MCX holds a more-than-80-per cent share of the country's commodity futures market. Its trading platform has more than 40 commodities including bullion, ferrous and non-ferrous metals, energy, and agri-commodities.