The primary market was down and under in 2011. The first issue tapping the markets in 2012 is likely to be a block buster and would be a sell out on the first day itself. MCX Limited, the multi-commodity exchange of India would be India’s first exchange to be listed and also the first of the block in the primary market in 2012. The company is offering 64,27,378 equity shares through an offer for sale in a price band of Rs 860 to 1032. The issue opens on Wednesday the 22nd of February and closes on Friday the 24th of February.

This would also be the first issue under revised guidelines where it would be mandatory to give a track record of previous issues of the merchant bankers handling the MCX issue. SEBI had made this mandatory and the same was a welcome step. Rules and regulations exist for the minimum font size that can be used in the RHP and one is sure that the merchant bankers would not flout the rules. However there is an element of practicality and spirit of law which goes beyond law. The font size used in the RHP of MCX is certainly as per law one presumes but has been reduced for the relevant data and is in a bigger font size prior and after the tables of the track record.

One does appreciate that the table has data which could not fit in a bigger font but could have been better presented. Relevant information is given on pages 444 to 446 of the RHP of MCX about the track record of merchant bankers. The RHP has a total of 531 pages and if by giving the same in a readable font meant an additional page, it sure would have made no difference to the cost involved. I am sure the intent of SEBI is to provide information which can be read by all without using a magnifying glass. In case the idea of the merchant bankers is to fulfil a requirement only and use the minimum font size required they have achieved it but left a sour taste because it attracts more attention than would have been necessary.

While on the issue of font size it would be relevant to say that the details talk about the price on listing day, 10th trading day, 20th trading day and 30th trading day. It also gives details of the relevant index on similar dates. It would be appropriate to also give the relevant information for the date of RHP as well. One hopes SEBI looks at it and does include the same in future issues to make the performance table meaningful and relevant.

This is an appeal to SEBI to advise merchant bankers that they should be considerate to investors and respect the spirit of the law and provide font size which is readable without the use of external aids like magnifying glass.

The issue MCX would be reviewed separately as it would be unfair to rate the issue in the same article.

Price Information of Past Issues handled by BRLMs

MCX RHP