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Thursday, February 16, 2012

MCX (Multi Commodity Exchange) : IPO SUBSCRIBE !!!

Price Band: Rs. 860 - Rs. 1032, Face Value: Rs.10.
Minimum Lot Size: 6 Shares.
Issue opens on: 22nd February 2012, Wednesday.
Issue closes on: 24th February 2012, Friday.
Listing on: 9th March 2012.
Total No. of Shares offered: 64,27,378 shares or 12.60 %
Employee Reservation: 2,50,000 shares.
Net Public Offer: 61,77,378 shares.
QIB Book: 3,088,689 shares.
Non – Institutional Bidders: 9,26,607 shares.
Retail Book: 21,62,082 shares.
Equity Shares outstanding prior Issue: 5,09,98,369 shares.
Equity Shares outstanding post Issue: 5,09,98,369 shares.
Total Size of the Issue: Rs. 552.75 Crs - Rs. 663.30 Crs.
IPO GRADING: 5/5 - CRISIL – Strong Fundamentals.
FAIR VALUE RANGE - Rs. 1200 - Rs. 1400.

KEY FINANCIALS (Consolidated) 31 Mar 2010 31 Mar 2011 31 Dec 2011
Total Income (Rs. in Cr) 493.70 447.56 474.50
Net Profit (Rs. in Cr) 220.80 176.27 217.95
Net Profit margin (%) 35.70 39.40 47.00
EPS (Rs.) 43.29 34.56 42.74
Net Asset Value (Rs.) 136.63 166.45 210.58
Return on Equity (%) 21.40 22.80 32.20
Return on Capital Employed (%) 31.30 31.80 45.10


MULTI COMMODITY EXCHANGE OF INDIA LIMITED : MCX Stock Exchange Limited was originally incorporated as a private limited company on April 19, 2002 as Multi Commodity Exchange of India Private Limited and subsequently converted into public limited company on May 16, 2002 in 2008 and is based in Mumbai, India. MCX Stock Exchange Limited provides a trading platform in currency derivatives in India. The company offers trading in currency futures contracts in four currencies consisting of the U.S. Dollar-Indian Rupee (USDINR), Euro-Indian Rupee (EURINR), Pound Sterling-Indian Rupee (GBPINR), and Japanese Yen-Indian Rupee (JPYINR). The company, through its subsidiary, MCX-SX Clearing Corporation Limited, offers clearing and settlement services in multi asset classes.  MCX enjoys the leadership position in the commodity futures industry, the market shares in terms of total value of commodities futures contracts traded on MCX in Fiscal 2011 was 82.4 % of the Indian commodity futures industry. There are over 30 commodity futures and options exchanges worldwide that trade commodities ranging from energy, metals, agriculture to livestock in many countries including the United States, China, Japan, Malaysia and the United Kingdom. In 2011, MCX stood at 5th place among the global commodity bourses in terms of futures contracts traded, during the period between January and June 2011 about 127.8 million futures contract were traded on MCX. MCX ranks no.1 in silver, no.2 in natural gas, no.3 in crude oil and gold futures trading. The company reaches out to about 800 cities and towns in India with the help of about 1,26,000 trading terminals. MCX COMDEX was the first and only composite commodity futures price index. MCX has main competitor is National Commodity & Derivative Exchange Ltd (NCDEX) – Mumbai; National Multi Commodity Exchange Ltd  (NMCEX)- Ahmedabad; Indian Commodity Exchange Ltd (ICEX) – Gurgaon; Ace Derivates and Commodity Exchange (ACE) – Ahmedabad.

MCX holds 5 % in Dubai Gold and Commodity Exchange and the book value of this investment was Rs. 2.185 Cr as of December 31, 2011; 100 % in MCX Clearing Corporation Ltd; 5 % in MCX SX; 26 % in MCX-SX Clearing Corporation Ltd; 51 % in SME Exchange of India Ltd with initial investment of Rs. 5,10,000

MCX derives its income primarily from transaction fees with respect to the trades executed on MCX Exchange, annual subscription fees, member admission fees, terminal charges, proceeds of sale and dividends from investments and interest from bank deposits. Commodities play an important role in India‘s economy. India has over 7,000 regulated agricultural markets, or mandis, and the majority of the nation‘s agricultural production is consumed domestically, according to the Agricultural Marketing Information Network. India is the world‘s leading producer of several agricultural commodities. The agriculture sector accounted for approximately 14.2 % of India‘s gross domestic product (GDP) at a constant price (2004-05) for the fiscal 2011. India‘s GDP at current market prices for the fiscal 2011 was estimated to be Rs. 78,779.47 billion (Source: Economic Survey 2010-11). There are currently 21 commodity exchanges recognised by FMC in India offering trading in over 60 commodity futures with the approval of FMC. In the fiscals 2009, 2010 and 2011, the total value of commodities traded on commodity futures exchanges in India was Rs. 52,489.57 billion, Rs. 77,647.54 billion and Rs. 119,489.42 billion, respectively. The total value of commodities traded on commodity futures exchanges in India for the first nine months ended December 31, 2011 was Rs. 137,228.55 billion.  

Out of the Offer of a total of 64,27,378 Equity Shares, 26,43,916 Equity Shares are being offered by FTIL, 21,12,025 Equity Shares are being offered by SBI (Equity), 7,81,508 Equity Shares are being offered by GLG, 3,90,754 Equity Shares are being offered by Alexandra, 2,46,175 Equity Shares are being offered by Corporation Bank, 1,48,000 Equity Shares are being offered by ICICI Lombard and 1,05,000 Equity Shares are being offered by Bank of Baroda. The Equity Shares being offered by the Selling Shareholders under the Offer have been held by such Selling Shareholders for a period of more than one year prior to filing of the Draft Red Herring Prospectus with SEBI.

Comparisons with Industry as on 31st March 2011

Exchange Currency Share Price Shares O/S (mn) Market Cap (mnUS$) EPS Estimate FY13 P/E FY13e EV/Sales FY13e EV/EBITDA FY13e
CME US$ 291 67 19295 17.90 16.20 0.90 8.50
ICE US$ 133 73 9644 8.00 16.50 2.30 8.80
MCX INR 1032 51 1053* NA NA NA NA
*1US$=Rs.50

According to me one should definitely look for subscribing Multi Commodity Exchange India Ltd IPO as it will be the first listed exchange on Indian bourses taking the country at par with other markets like US, UK, Japan, Australia, Singapore & Hong Kong. Globally , Exchanges trends to trade at average of 5 times their book value and 18 - 20 times their earnings. Long term investors should look into subscribing the IPO for good opportunity. Short term investor can subscribe for listing gains.

43 comments :

  1. hi, the analysis u provided was very useful. wer can i get de financials 4 de last 6quarters for MCX??? kindly help me.

    ReplyDelete
  2. HI MANIKANDAN,
    Thanks for visiting and commenting on my blog post.. Sorry there is no such way to know the financials of 6 quarter for the company the only available details are from 2010/11

    Do visit again,
    Your friend
    Bhavikk shah

    ReplyDelete
  3. Thanks Mr Bhavik for providing such a valuable information on one platform.

    Thanks Again

    ReplyDelete
  4. Keep Up the Good Work

    Regards

    Ashwani Kumar Aggarwal

    rareindianshares.com

    ReplyDelete
  5. Thanks to PIO & ASHWANI KUMAR AGGARWAL for your kind words...

    I will try to be my best and try to keep up to your expectation

    Thanks do visit again - add your self up
    Regards your friend
    BHAVIKK SHAH

    ReplyDelete
  6. Awesome post, Excellent analysis–and definitely something I haven’t seen done before. Looking forward to seeing what comes of this!

    ReplyDelete
  7. HI,
    KIS FUTURES, INC.
    Thanks for your kind words...
    I try to present what I feel..
    I see MCX to touch Rs. 1200 definitely on 9th March 2012 on its Listing...
    Looking forward to hear more from your side..

    Do visit Again...
    Your Friend
    BHAVIKK SHAH

    ReplyDelete
  8. HI FRIENDS,

    MCX IPO shares will list on Friday, March 09, 2012. Issue price of this IPO was fixed at Rs 1032/- per share. IPO was oversubscribed by 54.13 times (24.14 times in retail) on closing day.

    MCX IPO Listing Detail

    Listing Date: Friday, March 09, 2012
    BSE Scrip Code: 534091
    NSE Scrip Code: MCX
    Listing In: 'B' Group of Securities
    ISIN: INE745G01035
    Issue Price: Rs. 1,032.00 Per Equity Share
    Face Value: Rs. 10.00 Per Equity Share

    HOPE IT LISTS AS EXPECTED...

    YOUR FRIEND,
    BHAVIKK SHAH

    ReplyDelete
  9. Hi

    This is the reply for the query posted by Ishan Parekh on PRAJ IND for MCX-

    It is nice to know that you are making money in MCX - I would say that do buy MCX at near 1200 - As of best price do mail me a request at montyuu@yahoo.com.
    Do visit again
    Happy investing!

    Your friend
    Bhavikk

    ReplyDelete
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  15. HI Mr.BHAVIKK,

    Your post is fantastic, superb I am thrilled to read your post on MCX..
    Heard that BOMBAY STOCK EXCHANGE is also coming up with an IPO...if yes than I will be eagerly waiting for your views on it...

    Yesterday Multi Commodity Exchange of India (MCX) board has declared interim dividend of Rs 18/- per share.This is just the interim dividend, if we include the final dividend, then the shareholders will get Rs.36/- per share provided the final dividend is the same as the interim dividend. Shall I buy at this rate..

    Thanks.

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