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Fidelity International, a leading foreign institutional investor, has picked up about 9 per cent in the Multi Commodity Exchange of India Ltd for $49 million, ahead of its initial public offer slated to hit the market in April.
At this price, the valuation of the commodity exchange works out to $544 million. The exchange is likely to file its draft prospectus for the IPO with the Securities and Exchange Board of India later in February.
The existing shareholders of the MCX include Financial Technologies (India) Ltd, State Bank of India and its seven associate banks, SBI Life Insurance, National Stock Exchange, National Bank for Agriculture and Rural Development, HDFC Bank, Union Bank of India, Canara Bank, Bank of India, Bank of Baroda and Corporation Bank.
"The MCX accounts for 53 per cent of total market turnover of Indian commodity and futures market and the balance 47 per cent is accounted for by 23 other exchanges. In case of global commodities, the MCX has a market share of over 80 per cent," an MCX official said.
The MCX has international tie-ups with the Tokyo Commodity Exchange, the Baltic Exchange, the Chicago Climate Exchange, the New York Mercantile Exchange, the London Metal Exchange, the Dubai Metals and Commodities Centre, a strategic initiative of the Dubai government to set up the Dubai Gold and Commodities Exchange.
Fidelity now has a presence in all major financial centres in the world and a range of funds covering all regions, industrial sectors and asset classes.
The company has more than 50 years of experience and now has over 450 fund managers and analysts.
Jignesh Shah, managing director and CEO, MCX said in a press release: "This investment by Fidelity International in the MCX proves that strategic ventures of Financial Technologies such as the MCX, the DGCX and the National Spot Exchange for Agricultural Produce have huge value appeal for knowledgeable investors."
The MCX's financial ratios were fully comparable to the best exchanges such as the National Stock Exchange and the Chicago Mercantile Exchange, the released added.
