MCX opens with a bang; up 35%

Multi-Commodity Exchange of India (MCX) opened on high note, listing 35% over its offer price. MCX which raised over Rs 650 crore through an initial public offer had made its debut on the bourses today. MCX will be the India's first exchange to be listed.

The MCX stock was trading at Rs 1386.45 up Rs 357.50 on the BSE at 10.30 am IST.

The retail portion of the Rs 650 crore IPO was oversubscribed 24.14 times, while qualified institutional buyers (QIBs) and non institutional investors' portions were oversubscribed by 49.12 and 150.35 times, respectively.

This means the investors particularly retail investors would have been alloted only a small portion, due to the large oversubscription. Thus they would not have had the opportunity to make phenomenal gains on listing.

The success of the MCX IPO may encourage other promoters who have been waiting for market conditions to improve to come out with their offerings. In the past, investors have lost heavily in the primary market largely due to overpricing.

GoodReturns.in