India’s Multi Commodity Exchange Gets IPO Approval

Multi Commodity Exchange of India Ltd., the nation’s largest such bourse, got permission from the industry regulator to sell shares in an initial public offering.

The exchange has been exempted from selling a 10 percent stake to state-run companies after failing to find a buyer for the holding, B.C. Khatua, chairman of the Forward Markets Commission, the regulator, said in a phone interview.

The regulator last month gave conditional approval for the initial sale. The exchange, the world’s sixth-largest commodity futures bourse by volume, offered to sell a 10 percent stake at a minimum price of 563 rupees share, Edelweiss Capital Ltd. said in a May 17 newspaper advertisement.

“We wanted certain types of investors to have a stake in the exchange,” Khatua said. “They made an open offer for that. Since there are no takers for that, we had to give them an exemption from that condition.”

MCX must secure approval from the Securities Exchange Board of India, Khatua said.

Suman Das Sarma, vice president of communication for the exchange, declined to comment.

MCX, as the exchange is known, scrapped plans for a share sale in August 2008 after the stock market slumped. The exchange is promoted by Financial Technologies (India) Ltd. and Fidelity International Ltd., NYSE Euronext and Bank of America Merrill Lynch are among holders in the bourse.

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