MCX undecided over IPO, partially hit by futures ban
Three months after filing prospectus with the market regulator for an initial public offer, commodity exchange MCX is still undecided on the public issue as it deals with losses from the ban on select food futures.
By PTI |
KOLKATA: Three months after filing prospectus with the market regulator for an initial public offer, commodity exchange MCX is still undecided on the public issue as it deals with losses from the ban on select food futures.
"We have not decided on the initial public offer," Multi Commodity Exchange of India Limited Managing director and CEO Joseph Massey told PTI. MCX had planned to raise Rs 500 crore through the proposed issue.
Commenting on the ban on futures imposed on various agricultural commodities by the government, he said that there was no link between price rise and futures trading.
MCX, however, would continue to do what it was doing in terms of offering futures trading platform in other commodities.
Massey said that the ban imposed on potato and soya oil futures trading had resulted in a daily turnover loss of around Rs 100 crore to Rs 120 crore.
"We have lost two important contracts, potato and soya oil futures," he said.
To that extent, MCX had been affected since it had reduced the confidence of the end users, Massey said.
He said that high cost of energy, demand pull and supply constraints were pushing up the prices of commodities across the globe.
According to him, this was leading to re-alignment of commodity prices since energy costs would remain high.
"We have not decided on the initial public offer," Multi Commodity Exchange of India Limited Managing director and CEO Joseph Massey told PTI. MCX had planned to raise Rs 500 crore through the proposed issue.
Commenting on the ban on futures imposed on various agricultural commodities by the government, he said that there was no link between price rise and futures trading.
MCX, however, would continue to do what it was doing in terms of offering futures trading platform in other commodities.
Massey said that the ban imposed on potato and soya oil futures trading had resulted in a daily turnover loss of around Rs 100 crore to Rs 120 crore.
"We have lost two important contracts, potato and soya oil futures," he said.
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To that extent, MCX had been affected since it had reduced the confidence of the end users, Massey said.
He said that high cost of energy, demand pull and supply constraints were pushing up the prices of commodities across the globe.
According to him, this was leading to re-alignment of commodity prices since energy costs would remain high.
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