MCX IPO subscribed over 53 times, bids of Rs 30k cr

Moving closer to create history in terms of investor demand, the Initial Public Offer of top commodity bourse MCX was over-subscribed more than 53 times with bids worth about Rs 30,000 crore by late afternoon trade.

MD and CEO, Multi Commodity Exchange of India Limited (MCX), Lamon Rutten. PTI

The first ever public offer by an Indian exchange, was scheduled to close later this evening and has already emerged as the most successful IPO since the one by Anil Ambani-led Reliance group’s R-Power in January 2008.

MCX IPO was over-subscribed 53 times on robust demand from retail, HNIs and institutional investors and bids have come in for shares worth about Rs 30,000 crore.

Investment bankers said that the QIB portion of the offer has been oversubscribed nearly 50 times, the shares reserved for HNIs by over 150 times and the retail segment about 22 times. They noted that the over-subscription levels would go further higher as bidding was yet to get over.

In terms of retail investors’ demand, MCX IPO has already become one of the most over-subscribed public offers, while its overall subscription level is also probably the highest since R-Power, which got subscribed 73 times in January 2008.

So far, the Mundra Port & SEZ IPO in November 2007 is the most subscribed IPO of Indian market at 115 times.

The last highly successful IPO was of Coal India in October 2010, which got subscribed 15 times overall, but the retail portion was subscribed only about two times.

The shares are alloted on the basis of subscription levels in different segments after all the bids are received. The price band was  Rs 860-1,032 per share for the MCX IPO, which could raise Rs 663 crore at the top end of the price-band.

Out of this, shares worth nearly Rs 100 crore have already been allocated to 12 anchor investors and the remainder of about 55 lakh shares are being sold to the public investors. The promoters FTIL currently holds 31.2 per cent in MCX, which would come down to about 26 per cent after IPO.

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