Multi Commodity Exchange of India Limited (MCX) launches its IPO with the same opening on Wednesday the 22nd of February and closing on Friday the 24th of February. The issue is an offer for sale and would be for 64,27,378 equity shares. There would be a reservation for eligible employees of 2,50,000 equity shares.

The selling shareholders include Financial Technologies (India) Ltd, SBI, GLG Financial Funds, Alexandra Mauritius Limited, Corporation Bank, ICICI Lombard General Insurance and Bank of Baroda. As this is an offer for sale the pre-IPO and post IPO equity would remain the same. The share capital is 5,09,98,369 equity shares.

The company has earned a net profit of Rs 157.45 crs for the year ended March 2009, Rs 220.72 crs for the year ended March 2010, Rs 173.35 crs for the year ended March 2011 and Rs 220.67 crs in the nine months ended December 2011. The EPS for the year March 2010 is Rs 43.33, for March 2011 is Rs 33.99 and for the nine month period ended December 2011 is Rs 43.27.

The company is expected to issue shares around Rs 1000 which would mean that the PE ratio is around 17-20 times based on the annual profit of the company for the year ended March 2012.

This would be the first issue in the current calendar year 2012 and after the failed IPO from Goodwill Hospital. The issue is likely to receive a good response if grey market premiums are any indication. It is widely believed that the share premium of this IPO is in the region of Rs 160-180.