MCX to consider NSE listing

R.Y. Narayanan Updated - March 12, 2018 at 09:03 PM.

Mr Venkat Chary, Chairman, MCX, with Mr Lamon Rutten, MD & CEO, Mr Jignesh Shah, Vice-Chairman, and Mr Madhu Kannan, MD CEO, BSE, striking the gong to list the MCX on the Bombay Stock Exechange in Mumbai on Friday. Photo: Paul Noronha

The shares of MCX continued to shed gains from the day’s high as investors seemed to book profit in view of the phenomenal gains on the first day of trading in the bourses today.

The stock, which listed at a 34 per cent premium on the BSE at Rs 1,387 and then climbed higher to Rs 1,426, has slipped to 1,318.40 with a trading volume of 35.48 lakh shares in the post-noon session.

On the NSE, the MCX shares were down to Rs 1,319.10, still a gain of Rs 287.10 or 27.82 per cent. The share touched a high of Rs 1,428.55 on the NSE.

PTI reports: Multi-Commodity Exchange (MCX), which debuted at the BSE today with premium of over 34 per cent from the IPO price, said it will consider listing on the National Stock Exchange at an appropriate time.

“NSE is already the shareholder of MCX and listing on NSE will be the gradual step,” the MCX Vice-Chairman, Mr Jignesh Shah, told reporters on the sidelines of the listing ceremony on BSE.

The group company Financial Technologies is already listed on the NSE, Mr Shah said.

Although MCX had offered to list its shares on the BSE alone, NSE said in a late night circular on March 7 that it has also admitted MCX shares for trading on its platform.

MCX had previously said that it would first observe the volumes on BSE for some time and then decide about NSE.

However, NSE has proactively offered to list MCX shares on its platform. Regulations allow an exchange to add a stock in the list of ‘securities permitted to trade category’ even if a company has not applied itself.

The MCX scrip witnessed robust buying interest in the debut trade on the stock market and saw its price soar past Rs 1,400 level within minutes of listing.

In the pre-open bidding, the shares attracted a premium of over 40 per cent from its IPO price of Rs 1,032 a share and touched a high of Rs 1,450.

Based on a new price-discovery mechanism, followed for the first time in MCX listing, the shares finally opened normal trade at the BSE at Rs 1,387 — a premium of 34 per cent, and went on to gain further ground to a high of Rs 1,420.

After becoming the first Indian exchange to come out with an IPO, and also the first public offer of 2012, MCX also became the first company to list under the new SEBI rules introducing pre-open bidding in the first-day trade of stocks listing after IPOs.

The IPO got subscribed more than 54 times with bids worth about Rs 36,000 crore, as against the targeted proceeds of up to Rs 663 crore through sale of 64.27 lakh shares.

MCX had set a price band of Rs 860-1,032 per share for the IPO, and the final price was fixed at the top end at Rs 1,032 given the strong demand witnessed for the offer. The anchor investors were also allocated shares at the same price.

On the forthcoming Budget, Mr Shah said, “We are hopeful that lot of things will come positive in this Budget. All five national commodity exchanges and six regional commodity exchanges have given their inputs to the Government. We feel that the right decisions are flowing and within that framework we all will perform.”

Refusing to comment on the Finance Ministry’s proposed move to again impose a Commodities Transaction Tax (CTT), Mr Shah said, “In 2008 it was on consideration and was rolled back. We have not heard anything on that from the government.”

Published on March 9, 2012 05:08