Multi Commodity Exchange of India (MCX), country’s largest commodity exchange, will open its IPO (initial public offer) for subscription from today. This is India’s first commodity exchange to hit the capital market, by offering 64.27 lakh equity shares (dilution of 12.6% post issue) through this issue. Based on the comparison of the trading volumes of MCX with the leading global commodity futures exchanges in the world, MCX was the largest Silver exchange, the second largest Gold, Copper and Natural Gas exchange and the third largest Crude Oil exchange. MCX is the 5th largest exchange globally and has large market share (87%) in commodities market.

The company has registered growth of over 70% in first 3 quarters of FY12. However, considering the new products and commodities, being added by exchange and huge inflow of new registration of sub-brokers, company should be able to post a CAGR of over 25% for next 3 years. At higher end of price band of Rs.860-1032, valuation per share works out at PE of 16 times based on estimated EPS as Rs.65 for FY12. With such strong fundamentals this IPO is likely to get very sound response from retail and institutional investors.

Rating agency CRISIL too has also rated it 5/5 as it has strong business model of the company. We strongly advice to subscribe this IPO, On listing day itself we are expecting about 10% gains.


Muthoot Finance IPO, Should I Subscribe or Not?

by Bhaveek Patel

Muthoot Finance (MFL), with gold loan portfolio of Rs.130 billion, is the largest gold financing company in India. With about 20% market share in gold loan business, the company services to the needs of more than 4.1 million customers. A NBFC-ND-SI, MFL has about 67% of its branches located in gold-rich region of South India and accounts for 75% of total loan portfolio from this region. The company came with an IPO, with price band […]

Lovable Lingerie IPO Opens on 8 March 2011, Subscribe Or Not

by Bhaveek Patel

Lovable Lingerie has opened its (IPO) initial public offering for subscription from 8 March. The company has set price band at Rs.195 – 205 per share for its Rs.93.28 crore IPO. The issue will close on 11 March 2011. Bids can be made for 30 equity shares and in multiple of 30 shares thereafter. It is woman’s inner wear manufacturing company, actively engaged in this industry. Equity shares are likely to be listed on Bombay […]

Midvalley Entertainment IPO opens Today 10 Jan 2011

by Bhaveek Patel

South India based entertainment & media company Midvalley Entertainment Limited (MVEL) has opened its (IPO) initial public offering for subscription from today. The company has set price band at Rs.64-70 per share for its Rs.60 crore IPO. The issue will close for subscription on January 11. Bids can be made for 95 equity shares and in multiple of 95 shares thereafter. It is a film production, distribution and exhibition company, actively engaged in the media […]

Shares of Punjab and Sind Bank Will list on 30 Dec 2010

by Bhaveek Patel

State-owned Punjab and Sind Bank will list its equity shares on exchanges on 30 December 2010. Also, it has fixed issue price at higher end of price band of Rs.120 per share. However, equity shares issued to employees and retail investors was given at discount of 5% at Rs.114 per share. Through this IPO the bank raised Rs.470.82 cr; Also the IPO was subscribed 50.75 times (mainly due to QIB). We will see huge demand […]

MOIL Lists at Rs.565 vs Issue Price of Rs.375

by Bhaveek Patel

MOIL India’s largest manganese ore producer, lists at a premium of Rs.565 against its issue price of Rs.375. The listing gain for the stock was a more than 50%. At 9:22 AM the stock was trading at Rs.555, with volumes more than 11 Million. We have already recommended strongly to subscribe this IPO.

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