MCX Listing Seen At Rs 1390 Per Share

The much awaited Multi Commodity Exchange of India (MCX) has commenced the pre-open session trades. While interested bidders and sellers are busy punching and/or modifying and/or cancelling their orders, we at DSIJ believe that the final listing for the shares of MCX are seen at around Rs 1390 per share.

If so, then according to SEBI norms of 20 per cent circuit limit for IPO offer sizes in excess of Rs 250 crore, the price band for MCX shares today would range between Rs 1127 to Rs 1668 per share.

As a reminder to all our readers, while there is no arguing the fundamental and financial prowess of MCX India, we advise our readers to book profits on listing and await further clarity on the company over the coming quarters. There is also the overhang of the proposed commodity transaction tax (CTT) which could seriously affect the commodity trading business. With the Union Budget around the corner, the shares of MCX may also witness heavy volatility post listing. Hence it would be best to book profits on listing today. Anyway, we shall update our readers through our post-issue analysis on MCX IPO shortly.