SEBI clears MCX's draft prospectus for initial public offer of shares

The Securities and Exchange Board of India (SEBI) has cleared the draft red herring prospectus of Multi Commodity Exchange of India (MCX) for its proposed initial public offer of shares.

SEBI has directed MCX to file offer document with stock exchange/ROC. The SEBI approval for the IPO plan is valid for 12 months from now.

MCX proposes to offer 6,427,378 equity shares of Rs10 each through an IPO sale by existing shareholders about 12.60 per cent of the paid-up equity share capital of the company.

The offer will be through a 100 per cent book building process, where it is proposed that not more than 50 per cent of the net offer will be allocated on a proportionate basis to qualified institutional buyers, not less than 15 per cent of the issue will be available to non-institutional bidders and not less than 35 per cent of the issue will be available to retail individual bidders.

Currently, NYSE Euronext, Fidelity, Merrill and leading government institutions like SBI, Nabard, Corporation Bank etc hold shares in MCX.

Financial Technologies (India) Limited (FTIL), State Bank of India, GLG Financials Fund, Alexandra Mauritius Limited, Corporation Bank, ICICI Lombard General Insurance Company Limited and Bank of Baroda are the selling shareholders in the offer.