MCX IPO is the first exchange to list on Indian Bourses, one of the most awaited IPO. It is the fifth largest exchange in the world. MCX is the biggest silver exchange in the world. The company is offering 64 lacs shares on sale at a price band of Rs 860 to Rs 1032 per share. The company is planning to raise Rs 663 crores at the upper band. Crisil has rated the MCX IPO grade 5.
The exchange is known for its innovative products. It introduced indices for various sectors such as MCX Agri, MCXEnergy and MCXMetal. It was also the first exchange in India to offer trading in crude oil, steel and almonds.
The earning drivers for MCX are
Membership admission fees
Annual subscription fees
The company earns more than 50% of its revenue from transaction fees which in turn depends on the futures contracts traded on the exchange.
Risk for the company is that the government may impose a commodity transaction taxes like Securities transaction tax in future which may reduce its margins.
Overall the IPO is attractive and we expect the stock to trade 15-20% above its issue price, at least because of the scarcity of peers in the market.
Pankaj Baheti is a CFA Level III Candidate currently working with Pristine. Prior to Pristine, he was working with Achi Group. He has done his Post Graduate Diploma in Management and loves trekking in the hills of Arunachal.
Global Association of Risk Professionals,
Inc. (GARP®) does not endorse, promote, review or warrant the
accuracy of the products or services offered by Edu for FRM®
related information, nor does it endorse any pass rates claimed by
the provider. Further, GARP is not responsible for any fees or
costs paid by the user to Edu nor is GARP responsible for any fees
or costs of any person or entity providing any services to Edu
Study Program. FRM®, GARP® and Global Association of Risk
Professionals®, are trademarks owned by the Global Association of
Risk Professionals, Inc
CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by EduPristine. CFA Institute, CFA®, Claritas®, and Chartered Financial Analyst® are trademarks owned by CFA Institute.
Post ID = 12563
Utmost care has been taken to ensure that
there is no copyright violation or infringement in any of our
content. Still, in case you feel that there is any copyright
violation of any kind please send a mail to email@example.com and we
will rectify it.