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Wednesday, September 13, 2006

MCX to float IPO after govt okays FII norms in commodity exchange

Multi Commodity Exchange, MCX will re-file papers with Securities and Exchange Board of India for initial public offer, IPO of equity shares worth 3-5 billion rupees immediately after the government allows foreign institutional investment in commodity futures, managing director and chief executive officer Jignesh Shah said today, reports CMW.

Currently, Forward Contract (Regulation) Act does not allow mutual funds, foreign institutional investors and banks to trade in commodity futures.

"We are waiting for government policy on FII investment in commodity exchanges. Once it is done, we will immediately file papers. This (MCX) will be India`s first commodity exchange floating an IPO," Shah said.

MCX had filed its draft red herring prospectus for IPO on March 16 for issue of 5 million shares having a face value of Rs 10 each.

The IPO comprises a fresh float of 1.4 million shares by MCX and an offer for sale of 3.6 million shares by the promoters - Financial Technologies (India) and Corporation Bank.

The proceeds from the IPO would be utilised for further expansion of operations and setting up rural infrastructure.

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