MCX IPO Subscribed 0.91x On Day 1
By Prabhat Anantharaman |
2/22/2012 8:32 PM WednesdayMulti Commodity Exchange of India (MCX) which opened today for subscription received a stellar response from the retail as well as institutional investors as it got totally subscribed by 0.91x. The portion that is reserved for the retail investors has already been over-subscribed by 1.5x. The institutional portion got subscribed by 0.74x while the non-institutional portion got the least response as it was subscribed by only 0.16x.
Early this morning, media reports suggested that the IPO received an overwhelming response from anchor investors as a total of 12 anchor investors were allocated about 9.27 lakh shares at the top-end of the price band. Market sources have also added that along with the anchor investors most retail and institutional investors have also submitted their bids at the upper end of the price band.
With two more days to go for the IPO, we expect the subscription levels to be quite high. At the upper end of the price band (Rs 860-1032 per share) it seems that MCX IPO will be able to raise around Rs 663 crore.
We would recommend our readers to subscribe to the IPO with a view to enjoy listing day gains, but thereafter we advise caution as we await clarity on the future sustainability of its business model.
| IPO Subscription Detail |
|---|
| Category | No. of shares offered | No. of shares bid for | No. of times subscribed | Price* | Amount Subscribed for (Rs. Cr) |
|---|
| Institutional | 2162083 | 1602582 | 0.74 | 1032 | 165.39 |
| Non-institutional | 926607 | 145278 | 0.16 | 1032 | 14.99 |
| Retail | 2162082 | 3238962 | 1.50 | 1032 | 334.26 |
| Employees | 250000 | 972 | 0.00 | 1032 | 0.10 |
| Total | 5500772 | 4987794 | 0.91 | | 514.74 |
| * assumption of all bids on upper price band of IPO |
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