Multi Commodity Exchange (MCX) is set to file the draft red herring prospectus (DRHP) with Securities and Exchange Board of India (SEBI) by Friday, an official of India’s largest commodity exchange has said.
The Jignesh Shah-promoted MCX is reportedly planning to get the exchange listed. This is its second attempt after the initial plan was postponed in 2008 following adverse market conditions. “In all likelihood, we will file the DRHP by March 31,” the official told DNA.
MCX managing director and chief executive officer, Lamon Rutten, however, refused to divulge the exact time of filing of the document with the market regulator.
Rutten is currently on a tour of the metro cities promoting the exchange and highlighting the prospect of achieving a turnover level of Rs100 lakh crore in the 2011.
Financial Technology Ltd, MCX’s promoter company, which currently holds 31% stake in the commodity exchange, needs to pare its stake to 26% by September according to guidelines
of commodity market regulator Forward Market Commission.
Rutten said the IPO would be timed according to market conditions and not to meet the September deadline.
“Reduction of stake by the promoters can be done through several ways; it need not be via an IPO only,” he said.