MCX may submit fresh IPO draft

MUMBAI : The Multi Commodity Exchange (MCX) is expected to submit a fresh application to SEBI for its initial public offer as the validity period for its offering is set to end shortly. “The Sebi approval for the IPO expires on August 11 and if the IPO is not listed then a fresh application has to be filed,” said a source close to the development on the sidelines of a conference. The source said that the company can re-apply the very next day after the validity period of the earlier approval expires. But the fresh application has to be submitted within the current financial year. In case the company fails to do this, it would have to undertake a fresh audit, which would be a long-drawn process. Companies that have received Sebi’s nod have to complete the process of listing within 90 days to avoid refiling their offer documents. The other IPOs which Sebi had approved around the same time as MCX were that of UTI AMC and Reliance Infratel. While UTI AMC has decided to shelve its plans for now, there is no word on the IPO plans of Reliance Infratel. In case MCX re-applies, it would be the only company in recent times to do so, an industry source said. MCX expects to raise Rs 500-600 crore from the capital market, partly through issuing fresh equity and partly through dilution of the existing stake of shareholders. The issue price is expected to be close to Rs 600 per share. According to the current draft prospectus, 60 lakh fresh shares would be issued, while existing equity holders would offload 40 lakh shares. Of this, about 35 lakh shares of Financial Technologies (FTIL), one of the primary financiers of MCX, would be sold, bringing down its share in the company to 26% from the current 32%. In February, FTIL had already sold 5% of its stake to New York Stock Exchange. At that time, the exchange was valued at $1.2 bn, or Rs 5,000 crore.
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