MUMBAI (Commodity Online): Just days ahead of the MCX IPO, Aditya Birla Money has come up with a report giving a thumbs up for the much awaited IPO.
“Considering the company’s strong parentage, good business model and robust growth prospects, we believe it is a good investment opportunity and therefore recommend investors to SUBSCRIBE to the issue. Since there is no exchange in the listed space, MCX is likely to attract scarcity premium and Institutions mostly would be buyer post listing. Therefore the likelihood of listing gains is quite high. Investors could apply to this Issue both from listing gains as well as from a long term opportunity”, the report says.
“The company’s leadership position with 87.0% market share together with experienced management team and stable earning profile bodes well for its future growth”, the report adds.
However, the Indian government’s proposed Commodity Transaction Tax (CTT) could pose a big risk to company performance, the reports states. “We believe if CTT is imposed, the volume from arbitrageurs is likely to come down and could possibly reduce liquidity in the short term and consequently the exchange’s profitability. However based on the equity experience, it is seen that this levy gets absorbed in the system over a period of time, nevertheless a definitive negative for MCX”
