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MCX IPO subscribed 91% on Day 1

In the first day of the IPO, the investors submitted bids for about 50 lakh shares, which accounted for 90.7 per cent of about 55 lakh shares being sold through the 100 per cent book-building process.

BT Online Bureau   Mumbai     Last Updated: February 22, 2012  | 19:09 IST

The Initial Public Offer of top commodity exchange MCX was subscribed 91 per cent on its first day on Wednesday, as the first-ever IPO by an Indian bourse witnessed robust demand from retail as well as institutional investors.

The shares reserved for retail investors got over-subscribed 1.5 times on the first day itself, with bids worth an estimated over Rs 300 crore.

Besides, the portion reserved for institutional investors was subscribed 74 per cent with bids worth about Rs 150 crore.

The IPO, which is estimated to raise about Rs 663 crore and has already seen 'anchor investors' being allocated shares worth about Rs 100 crore, on Wednesday got total bids worth about Rs 500 crore, while bidding would continue for another two days.

The bidding began this morning for the MCX offer, which also happens to be the first IPO of the year 2012, and would continue till February 24. The shares are being sold in the price-band of Rs 860-1,032 a piece.

In the first day of the IPO, the investors submitted bids for about 50 lakh shares, which accounted for 90.7 per cent of about 55 lakh shares being sold through the 100 per cent book-building process.

A total of 12 anchor investors have already been allocated about 9.27 lakh shares at the top-end of the price band, taking the overall IPO size to 64,27,378 shares.

Investment bankers said that the bids are largely coming at the top-end of the price band, enthused by the demand from anchor investors at that level and the issue could get oversubscribed multiple times.

The anchor investor portion was also oversubscribed several times, showing an unprecedented demand level for many months now as the primary market has remained sluggish for almost a year now.

The total offer of 64,27,378 equity shares account for a 12.6 per cent stake in MCX and 2,50,000 shares have been reserved for eligible employees.

Based on the upper end of the price band, the IPO could raise up to Rs 663 crore.

At the end of Wednesday's bidding, the portions reserved for Qualified Institutional Investors was subscribed 74 per cent, while the retail portion was oversubscribed 1.5 times.

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