MCX initial share sale gets top rating

The initial public offering of MCX,which is the leader in the Indian commodity futures market,is expected to mop up about Rs 800 crore,as per market sources.

Ratings agency Crisil has assigned a 8220;five on five8221; IPO grade for MCX.

8220;This grade indicates that the fundamentals of the IPO are strong relative to other listed equity securities in India,8221; the ratings agency has said.

MCX had an 82 per cent share of the overall traded turnover in fiscal year 2010.

8220;With a strong technology-backed trading platform and infrastructure8230; MCX is able to provide high liquidity and low impact cost of transactions 8212; key criteria for the success of any exchange,8221; Crisil has said.

8220;While new commodity exchanges have been set up over the past couple of years,they have not been able to nudge MCX from the top. However8230; we expect competition could intensify in the future,8221; it said.

According to Crisil,over 85 per cent of MCX8217;s turnover is through metal and energy commodities,which are benchmarked to international prices.

8220;Not only do these commodities have higher volumes,but they also have higher turnover,which generates higher transaction fees compared to agricultural commodities,8221; it added.

MCX8217;s operating income increased at a CAGR Compound Annual Growth Rate of 18.3 per cent between FY8217;08 and FY8217;10.