Nice spring morning weather, red carpets all along the Dalal Street and strong positive global markets that ensured a good opening for the Sensex. It was a perfect setting for a company’s shares to list after a strong investor response, as it got subscribed 54.13 times.
Shares of Multi Commodity Exchange of India (MCX) listed at a premium of 34.39 per cent at Rs 1,387 apiece to the issue price of Rs 1,032 on Friday.
Positive domestic and global markets cues and more than two per cent gains for the Sensex and Nifty ensured good listing premium MCX – this year’s first IPO and the first exchange business to be listed on a stock exchange. MCX shares gave up some of the early gains but still closed over 25 per cent up at Rs 1,297.05 on BSE, and at Rs 1,294 on NSE. At the closing price of Rs 1,294, MCX is valued at Rs 6,614 crore (around $1.34billion).
MCX also became the first company to be listed under the new Sebi regulation for a company debuting on stock exchanges to go through one-hour pre- open session to discover the stock price before commencement of normal trading at 10 am.
The NSE, which introduced MCX stock on its platform in a last minute move though the company opted to list only on the BSE, saw maximum number of trades on the MCX counter. About 80 lakh shares worth Rs 1063.73 crore changed hands on NSE, while BSE saw about 60 lakh shares (worth Rs 809.57 crore).
A person in the know said NSE added MCX into the “permitted securities category” where they can add a scrip to their trading platform even if company has not applied. “MCX will become the first script to be proactively offered for trading by NSE on day of listing,” the person said.
Speaking at the listing ceremony, Jignesh Shah, founder and non-executive VC of MCX attributed the successful listing on the “right pricing”. He said that nothing was better than investors’ appreciation towards IPO.
Jagannadham Thunuguntla, head of research, SMC Global said, “The listing has generated hopes of revival of IPO market. Almost in all the metrics the MCX IPO has proved to be highly successful. It has brought much needed hope and smile to the Indian IPO market.”
While brokerages predicted another 20 to 25 per cent upside in the stock from the current levels, expectations of bringing in securities transaction tax and introduction of options trading in commodities may impact further upside in the stock, feel analysts.
Introduction of options may lead to rise in the volume and propel revenue growth of the MCX while introduction of STT only may cap the upside.