New Delhi: The first ever IPO by an Indian exchange opened with a robust demand on Wednesday, as the shares being sold by the country's largest commodity bourse MCX was subscribed by over 41 per cent within the first five hours.
The issue was subscribed 41.3 per cent at 1420 hours, as investors submitted bids worth over Rs 200 crore in the IPO looking to raise Rs 663 crore.
In the country's first IPO of the year, MCX had proposed to sell 64,27,378 equity shares in a price band of Rs 860-1,032 per share, pursuant to which the exchange would get listed on the BSE.
Out of this, 9,26,606 shares were allocated to 12 anchor investors last evening at Rs 1,032 per share, the top-end of the proposed price band, for a total of about Rs 96 crore.
The bidding for the remaining 55,007,72 shares in the public offer began this morning and would continue till February 24. The bids have already come for about 23 lakh shares.
The investment bankers said that many bids in the public offer are coming at the top-end and the anchor investor portion was also oversubscribed multiple times.
The total offer of 64,27,378 equity shares account for a 12.6 per cent stake in MCX. A total of 2,50,000 shares have been reserved for eligible employees.
Based on the upper end of the price band, the IPO could raise up to Rs 663 crore.
Brokerage firm Emkay Global Financial Services said that "scalable model, ability to generate sustainable free cash flows, healthy return ratios and reasonable valuations provide room for decent upside and has recommended investors to subscribe the issue."
Edelweiss Financial Services, Citigroup Global Markets India Private Ltd and Morgan Stanley India are the booking running lead managers of the share sale.
The promoters FTIL currently holds 31.2 per cent stake in MCX, which would come down to about 26 per cent after the IPO.
Financial Technologies (India) Ltd, State Bank of India, Bank of Baroda, GLF Financials Fund, Alexandra Mauritius Ltd, Corporation Bank and ICICI Lombard General Insurance Company are seven investors who will be divesting part of their holdings in MCX.
MCX has more than 70 per cent share in the annual estimated turnover of 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 at par with other markets like the US, UK, Japan, Australia and Hong Kong.