MCX IPO
MCX – About the company
Multi Commodity Exchange of India Ltd (MCX), the India based electronic commodity futures exchange was incorporated in 2003. MCX provides online trading services, clearing and settlement operations for commodity futures across India.
There are five electronic multi-commodity national exchanges in India including MCX, NCDEX, NMCE, ICEX and ACE and these accounted for 99.5% of the turnover of commodity futures contracts in India. MCX is the largest among these and have above 80% of the market share of the Indian commodity futures exchange industry.
MCX allows trading in more than 50 commodities across sectors like bullion, metals, energy, weather, and various agricultural products. MCX is the world's largest
Issue subscribed 54.13 times in total and 24.14 times in retail category
The IPO was oversubscribed 53 times as of 24th February. Retail investor’s portion was oversubscribed 4 times by 23rd February. This was first time that the retail portion in an IPO is oversubscribed before the qualified institutional investors (QIB) and non-institutional investors (NII). As mentioned by an investment banker, as the sentiment was bad for the IPO market and for the issue to sail through, they have intentionally left money on the table anf the price was kept low.
Post IPO
The sharp downward spiral the stock price had witnessed was because of external reasons and not because the stock had suddenly become less than investment-grade.
According to reports, there was a misconception that the FIIs were big traders in the MCX and if there was any large scale exit of the FIIs because of the twin issues of GAAR and the Mauritius Treaty, there would be a huge sell-off by them, leading to loss in value of holdings. This misconception of FII selling was a factor for the investors rushing to the exit door in so far as MCX was concerned. This might be one of the reason of falling stock
Its trading volume increased to over 17.7 million contracts, up 21 per cent from the previous year. This significant growth is largely due to strong growth in interest-rate and index derivatives products, which increased 40 per cent and 15 per cent respectively. In addition, the underlying value of contracts traded averaged more than $30 billion (currency is of Canadian Dollars) on a daily basis, compared to $20 billion in 2002.Though the Montreal Exchange was doing fine on its own joining together with the Toronto Exchange has made the
The company was taking the big risks of financial. Due to the firm was started winding down after collapse of the Bear Stearns hedge fund. The firm also had accumulated a very large commercial real estate portfolio. The CEO of the firm believed that it had sufficient funds to tackle the problems after borrow money from the federal reserved investment.
...rp decline to their public-investors flee in all directions and, as a result, the company’s stock falls sharply.
How has MCI raised external funds in the past? How sensible have these decision been?
Another issue that caused the market to drop has to do with America’s finances. In the 1920’s, stock prices were getting out of hand. Many investors were buying stocks on margin:
.... It has used this strategy to overcome various challenges (such as avoiding hostile takeover by foreign companies) while at the same time developing competitive advantages. Examples of the competitive advantages CEMEX has enjoyed over the years include ability to operate in volatile markets, integrate successfully with its acquired firms, and easy acquisition of funds. However with its level of debt increasing increasing, CEMEX should know consider expanding through an organic growth strategy.
Caterpillar Inc. also faces the risk of its cash flow and earnings being affected by fluctuations in the exchange rates of currency, commodity prices, and interest rates. To control for this, the company’s Risk Management Policy ensures prudent management of interest rates, commodity prices, and exchange rates of foreign currency by allowing the use of derivative financial instruments. According to the policy, the derivative financial instruments are not supposed to be used for the purpose of speculation. In its pricing strategy, Caterpillar Inc. faces the risk of difficult shipping of its products. This risk can be encountered by offering its products on instalments and lease to its loyal customers (Caterpillar, Inc. (CAT), 2011).
Chevron Corp. (NYSE:CVX) is the second largest energy corporation in the U.S, just falling behind Exxon Mobil and considered as one of the six Super or Big Oil companies in the world. It operates in over 180 countries, having established and using a strong network of retail gas stations which include big brands such as Chevron Corp. itself, Texaco and Caltex. Chevron business integration is a vertical one, with its operations diversifying from producing oil to mining as well manufacturing petrochemical products.
As a multinational, Xerox specializes in technology and services and operates under two different market environments, the macro and microenvironment. In the microenvironment, the company has influence while in the macro-environment the company cannot make market changes.
Our large purchasing power allows us the opportunity to consolidate our purchases and create futures contracts for a better price. This can help sustain our margins in a weaker economy, or hedge against a great increase in coffee purchases driving the demand and price of beans up.
Tesla Motors Inc. is an American public company which is known worldwide because of its experience in designing, manufacturing and also the selling of electric cars and electric components for vehicles. The motor was started back in the year 2003 in San Carlos, California in the United States (Teslamotors.com, 2014). The company had its headquarters in Palo Alto and at the time of its inception, Elon Musk was its chief executive officer (CEO) (Hunger, 2010).
i. India is the largest consumer of gold in the world to be followed by China and Japan. India is emerging as world's largest trading centre of this commodity with a target of US$ 16 bn. set for 2010.
As the market was crowded with inexperienced but feverishly eager investors who lacked capital reserves, the falling prices produced a shock effect...
The XYZ Corporation was established in 2004 and their main office is located in Vancouver, BC. The company’s main objective is to create new innovating technology for media devices, computers, and digital music players. They deal with the design, manufacturing and marketing of the products. XYZ Corporation has been providing Canadians with groundbreaking technology throughout the years and continues to create new technology to provide others with top-level technology. Although, recently their success rate has appeared to drop rapidly due to a number of factors that will be explored throughout this case study. Their main objective is to target the problems so that they can work towards having the issues resolved as quickly as possible. If they do not take any course of action, the state of the company may be in extreme danger. This case study is designed to explore the areas of the company and discover the problems blocking the XYZ Corporation from success.
The biggest stock exchanges are the New York Stock Exchange and NASDAQ. The New York Stock Exchange is a large building in Lower Manhattan that does auction-style trading with a lot of face to face interaction through specialists, brokers, and buyers. There are upper floors in this exchange on which specialists determine the prices of all the stocks. This information then travels to the brokers who work auctions face to face with buyers in order to sell the stocks. America’s biggest companies, like Coca-Cola and McDonald’s, sell their stocks through this exchange. NASDAQ is a virtual stock exchange with no physical building. This exchange was created during the 1970s but began thriving during the tech boom of the 1990s. The tech boom helped this exchange become the home of more technological companies li...