Multi Commodity Exchange of India Ltd (MCX) announced a price band of Rs 860 to Rs 1,032 a share for its initial public offering through an offer for sale. If it sails through, this could be the first public issue of 2012 and also the first IPO of an exchange in India.
It may be recalled that this year's first public issue Goodwill Hospital was forced to withdraw as the company got poor response from investors. The MCX issue will open on February 22 and close on February 24. The shares will be listed on the BSE.
Divesting entities
The offer will be through a 100 per cent book-building process and entails a net offer to the public of 61.77 lakh equity shares with a reservation for eligible employees of 25 lakh equity shares. At least 50 per cent of the net offer will be allotted to qualified institutional buyers, not less than 15 per cent to non-institutional bidders and not less than 35 per cent to retail individual bidders.
The offer for sale of 64.27 lakh equity shares of Rs 10 each constitutes 12.6 per cent of the paid-up equity share capital of Rs 50.99 crore.
Seven of the existing investors including Financial Technologies (India) Ltd, SBI, Bank of Baroda, GLG Financials Fund, Alexandra Mauritius Ltd, Corporation Bank and ICICI Lombard General Insurance Company Ltd will be divesting part of their holdings in MCX.
Edelweiss Financial Services Ltd, Citigroup Global Markets India Private Ltd and Morgan Stanley India Company Private Ltd are the book running lead managers to the issue.