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CRISIL Equities has assigned a CRISIL IPO grade of "5/5" ("five on five") to the proposed initial public offer (IPO) of Multi Commodity Exchange of India Limited (MCX).
The grade indicates that fundamentals of the IPO are strong, relative to the other listed equity securities in India, CRISIL Equities said in a statement here.
The grade reflects MCX's leadership position in the Indian commodity futures market over the past four years, with 82 per cent share of the overall traded turnover in FY10. It is a leader in the trading of bullion, crude oil, copper and natural gas which accounted for 85 per cent of its traded turnover in FY10.
Historically, metals and energy commodities have also witnessed lower regulatory intervention. With a strong technology-backed trading platform and infrastructure (supplied by its promoter Financial Technologies India Ltd (FTIL), MCX has been able to provide high liquidity and low impact cost of transactions - key criteria for the success of any exchange.
The grade also draws support from MCX's strong management team and its ability to attract talented and experienced personnel. Further, while new commodity exchanges had been set up over the past couple of years, they have not been able to nudge MCX from the top position.
However, given the high profitability and cash-churning nature of the business, "we expect competition to intensify in the future", the release said.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
CRISIL Equities has assigned a CRISIL IPO grade of "5/5" ("five on five") to the proposed initial public offer (IPO) of Multi Commodity Exchange of India Limited (MCX).
The grade indicates that fundamentals of the IPO are strong, relative to the other listed equity securities in India, CRISIL Equities said in a statement here.
The grade reflects MCX's leadership position in the Indian commodity futures market over the past four years, with 82 per cent share of the overall traded turnover in FY10. It is a leader in the trading of bullion, crude oil, copper and natural gas which accounted for 85 per cent of its traded turnover in FY10.
Historically, metals and energy commodities have also witnessed lower regulatory intervention. With a strong technology-backed trading platform and infrastructure (supplied by its promoter Financial Technologies India Ltd (FTIL), MCX has been able to provide high liquidity and low impact cost of transactions - key criteria for the success of any exchange.
The grade also draws support from MCX's strong management team and its ability to attract talented and experienced personnel. Further, while new commodity exchanges had been set up over the past couple of years, they have not been able to nudge MCX from the top position.
However, given the high profitability and cash-churning nature of the business, "we expect competition to intensify in the future", the release said.
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