National Commodity & Derivatives Exchange (NCDEX) IPO

National Commodity & Derivatives Exchange (NCDEX) IPO: Analysis: BUSINESS OVERVIEW, RELEASE DATE, GMP, PRICE BAND

NCDEX will turn into the second commodity bourse exchange in India to be listed on the exchange. Trading volumes on the exchange have gotten destroyed since 2018. All things considered, more than ₹3,000 crores worth of items were exchanged on NCDEX three years prior, which has boiled down to under ₹1,000 crores. NCDEX has proposed to use the net continues towards commitment to the centre settlement to ensure reserve, total assets necessities of National Commodity Clearing Ltd and general corporate purposes.

What is the National Commodity & Derivatives Exchange (NCDEX)?

The National Commodity and Derivatives Exchange (NCDEX) is an agricultural commodity exchange managing fundamentally in agrarian items in India. The National Commodity and Derivatives Exchange was set up in 2003, and its central command is in Mumbai. A significant number of India’s driving monetary organizations have a stake in the NCDEX. As of September 2019, critical investors incorporated the Life Insurance Corporation of India (LIC), the National Stock Exchange of India Limited (NSE), and the National Bank for Agricultural and Rural Development (NABARD).

The National Commodity and Derivatives Exchange (NCDEX) is one of the top commodity exchanges in India dependent on the value and the number of contracts. It is second just to the Multi Commodity Exchange (MCX), which is centred around energy and metals. The National Commodity and Derivatives Exchange is situated in Mumbai however has workplace/offices in the nation to work with the exchange. The exchange included prospects contracts on 19 rural agro products and alternatives on five horticultural items as of March 2019. A free directorate runs NCDEX, and they have no immediate interests in agriculture.

India is a politically influential nation as far as farming is concerned. It is perhaps the biggest producer of wheat, rice, milk, and numerous kinds of agro products. The size of India’s agriculture is to some degree covered up globally on the grounds that the overpopulated country burns through a lot of what it produces. Notwithstanding, expanding ranch level usefulness is making India’s solidarity in agribusiness more evident. The NCDEX assumes a critical part in India’s developing agriculture growth.

Some financial points of NCDEX?

The IPO contains a new issue accumulating up to Rs 100 crore and a proposal of an offer to sell up to 1.44 crore shares, as per the draft red herring prospectus (DRHP).

The public issue is required to raise about Rs 500 crore, including from the fresh issue of offers, according to partner banking sources.

Build India Capital Advisors LLP, Canara Bank NSE, Indian Farmers Fertilizer Cooperative, Investcorp Private Equity Fund are among the top-selling investors. 

Additionally, Jaypee Capital Services, National Bank for Agriculture and Rural Development, Oman India Joint Investment Fund and Punjab National Bank will likewise sell their stakes.

The National Stock Exchange (NSE) has a 15 per cent stake in the rural commodity exchange, while the Life Insurance Corporation of India (LIC) and NABARD have an 11.10 per cent stake each. IFFCO has 10% whereas Oman India Joint Investment Fund 10% and Punjab National Bank 7.29 per cent, among others, as indicated by the DRHP.

NCDEX has proposed to use the net continues towards commitment to the centre settlement to ensure reserve, total assets prerequisites of National Commodity Clearing Limited and general corporate purposes, according to the record.

The books running lead chiefs to the IPO are ICICI Securities and SBI Capital Markets. ICICI Securities is planning to be the lead administrator for the issue. The offers are proposed to be recorded on the BSE and NSE. 

The exchange offers administrations across the whole post-gather rural items esteem chain by using a different presence, which has empowered it to make a wide organization of partners and market members.

Issuer nameNational Commodity & Derivatives Exchange Limited (NCDEX)
Type of Issue 100% Book Built Issue IPO
Issue time Period?
Price Band of the IssueRs. 250 – 300per Equity Share (Expected) not confirmed
Size of the Issue Rs.500* Crores
Face Value of the IssueRs.10 per Equity Share
Bit LotX Equity Shares and in multiples thereof
The retail maximum Bid amountRs. 2 Lakhs
QIB50% of the issue size
NIB15% of the issue size
Retail Individual Bidders35% of the issue size
Employee ReservationX Equity Shares (Rs. – Crs)
Employee Discount?
Listingon NSE & BSE both
Lead ManagersICICI Securities and SBI Capital Markets
Grey Market Price(GMP)?

What would be the price band of the National Commodity & Derivatives Exchange (NCDEX) IPO?

The price band for the NCDEX offer would be marked through the procedural  book-building measures. The issue price is yet to be decided and released formally by the company. According to the expectations, it may be as are source indicated in the above table.

We will update the article as soon as we get the price information from a trusted source. 

The books running lead chiefs to the IPO are ICICI Securities and SBI Capital Markets. ICICI Securities is planning to be the lead administrator for the issue and they will be the books formulating lead chiefs to the book building of the issue.

What would be the Grey Market Premium of National Commodity & Derivatives Exchange (NCDEX) IPO?

GMP is not announced yet (as of 27/05/2021), But when there will be official information about the GMP from our sources,we will update the price. 

Make sure to have your notification turned on to get the latest update from our website.

What will be the release date for National Commodity & Derivatives Exchange (NCDEX) IPO?

The Initial Public Offer is expected to be issued soon, but the exact date is not yet announced by the officials. As per expectations, the IPO will be launched when the pandemic situation clams down a bit in 2021.

But, when we get accurate information about the date we will update it. 

How to apply for National Commodity & Derivatives Exchange (NCDEX) IPO?

Now, you can apply for the IPO through the normal IPO application process using Zerodha, Upstox or any other broker and if you don’t know how to apply for IPO read our blog on ‘Easy Step by Step guide apply for IPO in India’.

But, honestly speaking, getting allotted for an IPO is like winning a lottery and it depends on your luck. If you do get allotted then read our blog on ‘How to make money using IPO in India’.

Application of IPO is subject to the block of funds with the bank account so during UPI ID application enable the Auto Pay option.

Conclusion:

National Commodity and Derivatives Exchange Limited organization IPO and India’s driving rural commodity exchange. Normal day by day turnover (by value) of 78% in farming commodity sections for the most recent four years. Public Commodity and Derivatives Exchange Limited is driven by innovation and expertly oversaw organization.

  • NCDEX is the leading agricultural commodity exchange in India.
  • NCDEX offers a high-end technology integrated exchange platform.
  • NCDEX has both government and private companies shareholding.
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Written by
Sourav Suman
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