Thursday, February 23, 2012

Strong Response to MCX IPO

The Multi Commodity exchange of India's (MCX) Initial Public Offer (IPO) has received strong response as the offer has been oversubscribed within the second day (Thursday) of the issue itself.

Investors are seen bagging an attractive opportunity to invest in the company. Many analysts had given a good recommendation for the stock with Aditya Birla Money issuing a strong buy call.

The IPO was oversubscribed by about 1.5 times, attracting bids worth around Rs 800 crore by afternoon. The issue ends on Friday. This is also the first major IPO of 2012 and will instill confidence amongst companies who have postponed their IPO's fearing weak investor response.

MCX has thus become the first exchange to offer shares and get publicly listed. The price band of the share has been set at Rs 860-Rs 1032/share. Over 64 lakh shares are on offer, accounting for 12.6% stake in MCX. 2.5 lakh shares have been reserved for company employees. FTIL, SBI, Bank of Baroda, ICICI Lombard etc are some of the shareholders liquidating a part of their stake.