MCX’s proposed IPO has strong fundamentals: Crisil

Crisil has given “five on five” IPO grade for MCX, which is promoted by Financial Technologies India

Rating agency Crisil said the proposed initial share sale of Multi Commodity Exchange of India (MCX) has strong fundamentals, especially reflecting its leadership position in the Indian commodity futures market.

MCX filed draft papers for the IPO with capital market regulator SEBI on 31 March 2011. The share sale is expected to raise an estimated Rs800 crore, according to market sources.

Crisil has given “five on five” IPO grade for MCX, which is promoted by Financial Technologies India.

“This grade indicates that the fundamentals of the IPO are strong relative to other listed equity securities in India,” the rating agency said in a statement.

According to Crisil, the grade also reflects MCX’s leadership position in the Indian commodity futures market over the past four years. The entity had an 82% share of the overall traded turnover in fiscal year 2010.

“It is a leader in the trading of bullion, crude oil, copper and natural gas,” the statement noted.

“With a strong technology-backed trading platform and infrastructure, MCX is able to provide high liquidity and low impact cost of transactions–key criteria for the success of any exchange,” it added.

Crisil pointed out that the rating also considered the benefits that MCX would derive from amendments to the Forward Contracts (Regulation) Act--that would allow trading of options and indices as well as participation by institutional investors. This would in turn increase the traded turnover on commodity exchanges.

“While new commodity exchanges have been set up over the past couple of years, they have not been able to nudge MCX from the top. However, we expect competition could intensify in the future,” it said.

MCX’s operating income has increased at a CAGR (compounded annual growth rate) of 18.3% over FY08-10.


Rushil Decor to enter capital market

The company has fixed price band at Rs63-Rs72

Rushil Decor said that it is entering the capital market with a public issue of 56,43,750 equity shares of face value Rs10 each on 20 June 2011. The company has fixed price band at Rs63-Rs72.

The issue includes promoter’s contribution of 2,43,750 equity shares and issue to the public of 54 lakh equity shares. The issue will close on 23rd June.

The company manufactures decorative laminated sheets with a network of branches, distributors and dealers across India. It offers comprehensive engineered interior products including decorative laminate sheets and plain particle boards.

Issue proceeds are proposed to be used for setting up of medium density fibre board plant at Amble Industrial Area in Chikmagalur (Karnataka); and for working capital requirement.

Corporate Strategic Allianz Ltd is the book running lead manager and Indbank Merchant Banking Services Ltd is the co-book running lead manager to the issue.


SBI Mutual Fund introduces Debt Fund Series 367 Days-2

SBI Mutual Fund new issue closes on 20th June

SBI Mutual Fund has launched SBI Debt Fund Series 367 Days-2, a close-ended income scheme.

The investment objective of the scheme is to provide regular income, liquidity and returns to the investors through investments in a portfolio comprising of debt instruments such as government securities, AAA/AA+ bonds and money market instruments maturing on or before the maturity of the scheme.

The new issue closes on 20th June. The minimum investment amount is Rs5,000.

CRISIL Short Term Bond Fund Index is the benchmark index. Rajeev Radhakrishnan is the fund manager.


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