MCX IPO Price Band ~ Rs 860 to Rs 1032 ~ Promoter FTIL’s Promoter Jignesh has a lot of Jigar…but should we make his MCX our Jaan !?

MCX IPO Price Band ~ Rs 860 to Rs 1032 ~ Promoter FTIL’s Promoter Jignesh has a lot of Jigar…but should we make his MCX our Jaan !?….Grey Market Premium is hovering around  Rs 300

Issue Opened today,Wednesday,February 22,2012  and closes on Friday,February 24,2012…

The Town’s gone all over MCX IPO…they would have had a tempered response had they gone all over the 534 Page Red Herring Prospectus filed with SEBI….Real time Book Building Statistics on Day 1 reveal the issue has yet to be fully subscribed…it will be oversubscribed in the next two days,despite Sensex dampening down by over 283 points to 18145

I’ve actually gone through the whole Prospectus and have jotted down over 20 pages of interesting notings…. Will blog in more detail on MCX later tonight or tomorrow through various interesting angles

…let’s decide on the basis of Offer for Sale Pricing v/s Valuation and Future Growth Prospects rather than Hyped Sentiment and CRISIL giving a top 5 IPO Grading and  Lead Managers parading a Host of well known Institutions eager to get a slice of the MCX pie !,whether we can pay nearly 5x Book and 18x Earnings and hope to make good gains in MCX because it enjoys virtually market share monopoly,exccellent profit margins,scarcity premium and high growth potential

…..As at December 31,2011 the Networth was Rs 1074 crs with Equity (FV Rs 10) at Rs 50 crs and Nine Months Earnings were Rs 217 crs giving a Book of  Rs 210.58 and a Non Annualised EPS of @ Rs 43

….A successful Listing will make MCX worth more than a Billion Dollars….is it really worth this much !

….well MCX is truly MC-Triple X ! to early Pre IPO Banking and Other Institution Investors who subscribed directly  at par FV Rs 10 in MCX in the Years 2004 to 2006 before the subdivision of FV to Rs 5 in 2007

…Then in 2007 and 2008 the Promoter Financial Technologies (FTIL) sold some part of it’s holdings to several Corporates and Institutions at Rs 525,Rs 577.50  and Rs 559.21  for a FV Rs 5 Share…then on March 14,2011 last year the Shares were again consolidated back to FV Rs 10 and the very next day March 15,2011 a Bonus Issue of 1 : 4 was effected….While FTIL cashed in well in 2007 and 2008 the Investors who purchased from it have not really made any strong gains

…more on MCX tonight or tommorrow