NCDEX IPO is a National Commodity & Derivatives Exchange Limited company IPO and India’s leading agricultural commodity exchange. Average daily turnover (by value)of 78% in agricultural commodity segments for last four years. National Commodity & Derivatives Exchange Limited is driven by technology and professionally managed company.
Current shareholders are NSE, LIC, NABARD, IFFCO, Oman India Joint Investment Fund, PNB, Build India Capital Advisors LLP, CANARA BANK, Shree Renuka Sugars Limited, CRISIL Limited, Jaypee Capital Services Limited and Star Agri warehousing and Collateral Management Ltd.
Securities and Exchange Board of India regulates.
NCDEX headquarters of NCDEX located in Mumbai. As of 18 may, 2020 NCDEX provide 21 agricultural commodities , 5 agricultural commodities and options contracts through Exchange platform.
Key Points
- leading agricultural commodity exchange in India.
- Offers high end technology integrated exchange platform.
- India’s top Government owned and private companies are shareholders.
NCDEX IPO Issue Details
| Issue | Details |
|---|---|
| Name | NCDEX |
| Issue Opens | 2020 |
| Issue Closes | 2020 |
| IPO Type | Book Built Issue IPO |
| Issue Size (crore) | Approx. INR 550 Crores |
| Face Value | ₹10 per Equity Share |
| Fresh Issue | [●] Eq Shares (overall up to ₹[●] crore) |
| Offer for Sale | 14,453,774 Eq Shares (overall up to ₹500 crore) |
| Price Band | Between ₹250 – ₹300 (we expected) |
| Listing On | NSE, BSE |
| No. of shares on offer (crore) | Up to 14,453,774 Equity Shares |
| QIB (%) | 50% |
| NIB (%) | 15% |
| Retail (%) | 35% |
| Minimum lot size (no of shares) | 1 lot (Min lot) ₹15,000 (1 lot) (we expected) |
| Maximum Lot Size | 13 lot (Max lot) ₹2,00,000 (13 Lot) (we expected) |
| Employee Discount | ₹ [●] per equity shares |
Shareholding Pattern (%)
| Pre-Issue | Post-Issue | |
|---|---|---|
| Promoter Group | 100.0 | |
| Public/Other | 0.0 |
NCDEX Financial Details (INR crore)
| ₹ Crore | FY17 | FY18 | FY19 | H1 FY2020 |
|---|---|---|---|---|
| Total Income | 134.44 | 121.75 | 107.80 | 92.6 |
| Total Expense | 129.97 | 133.96 | 116.42 | 88.9 |
| Profit After Tax | 9.42 | 24.95 | 32.85 | 8.4 |
| Earnings per share (EPS) | 4.40 | 4.83 | 5.32 | 9.1 |
NCDEX Company Contact Information
| Contact Details | Registrar |
|---|---|
| National Commodity & Derivatives Exchange Limited 1st Floor, Akruti Corporate Park, Near G.E.Garden, L.B.S. Road, Kanjurmarg (West), Mumbai 400 078, | Link Intime India Private Ltd C 101, 247 Park, L.B.S.Marg, Vikhroli (West), Mumbai – 400083 |
| Phone: +91 22 6640 6789 | Phone: +91 22 4918 6200 |
| Email: [email protected] | Email: [email protected] |
| Website: www.ncdex.com | Website: www.linkintime.co.in |
Listing Time Table of NCDEX
- IPO Opening Date: Not Yet Announced.
- IPO Closing Date: Not Yet Announced.
- Final Allotment: Not Yet Announced.
- Refunds: Not Yet Announced.
- Transfer of shares to Demat accounts: Not Yet Announced.
- Share Credit to Demat Account: Not Yet Announced.
Listing Day NCDEX Performance.
| NSE | BSE | |
| Listing Date | 2020 | 2020 |
| IPO Price | ₹ [●] | ₹ [●] |
| Open | ₹ [●] | ₹ [●] |
| High | ₹ [●] | ₹ [●] |
| low | ₹ [●] | ₹ [●] |
| Close | ₹ [●] | ₹ [●] |
| Volume | ||
| Listing Day P/L |
Analyst Reviews.
NCDEX IPO Rating
| Benchmarks | Ratings |
|---|---|
| Business Model | 5/5 |
| Industry Analysis | 4.5/5 |
| Competitive Advantage | 4.5/5 |
| Management | 5/5 |
| Corporate Governance | 5/5 |
| Company Reports | 4.5/5 |
| Evaluate Balance Sheets | 4.5/5 |
| Financial Performance | 4.5/5 |
| Quality Of Earnings | 4.8/5 |
| Top Broker Reviews | 5/5 |
| Overall | 4.7/5 |
Subscription Details
| Category | Offered Shares | DAY 1 | DAY 2 | DAY 3 | DAY 4 |
|---|---|---|---|---|---|
| QIB | |||||
| NII | |||||
| Retail | |||||
| Total |
NCDEX IPO Lead Managers
| Lead Managers | Lead Managers |
|---|---|
| ICICI Securities LimitedICICI Center H.T. Parekh Marg, Churchgate Mumbai 400 020, Maharashtra | SBI CapitalMarkets Limited 202, Maker Tower ‘E’Cuffe Parade Mumbai 400 005,Maharashtra Telephone no.: +91 22 2217 8300 |
| Telephone no.: +91 22 2288 2460 | Telephone no.: +91 22 2217 8300 |
| E-mail: [email protected] Investor grievance: [email protected] | E-mail: [email protected] Investor grievance: [email protected] |
| Website: www.icicisecurities.com | Website: www.sbicaps.com |
| Contact Person: Arjun A Mehrotra, Anurag Byas | Contact Person: Karan Savardekar |
| SEBI Registration No: INM000011179 | SEBI Registration No: INM000003531 |
Company Promoters and Boards of Directors
| Chairman: Mr. Chaman Kumar | Mr. Ravindra Kumar Roye |
| Dr. Ashok Gulati | Mr. B. Venugopal |
| Mr. Nirmalendu Jajodia | Mr. Rakesh Kapur |
| Mr. Prem Kumar Malhotra | Mr. Srinath Srinivasan |
| Dr. Purvi Mehta | Mr. Sunil Kumar Mr. Vijay Kumar V. |
NCDEX Competitive Peers
| Company Name | Founded Year | Annual Revenue (Est) | Total Employee (Est) |
|---|---|---|---|
| NCDEX | 2003 | INR 168 Cr | 281 |
| MCX | 2003 | INR 156 Cr | 364 |
| NSE | 1992 | INR 201 Cr | 570 |
| BSE | 1875 | INR 350 Cr | 520 |
NCDEX IPO Grey Market Updates
- Grey Market Premium price: ₹[●]
- Kostak rate: ₹[●]
- Sauda: ₹[●]
NCDEX Limited Company Description
A brief history
Established in the year 2003, the National Commodity & Derivative Exchange is an online platform that allows agricultural commodity exchange. Established as a public limited company under the Companies Act, 1956, it has an independent board of directors that has no direct interest in agriculture.
NCDEX is regulated by the Stock Exchange Board of India (SEBI) and subjected to every law similar to other exchanges.
It allows the trading of commodity derivatives for the participants. With Vijay Kumar as the CEO and MD of NCDEX, it is headquartered in Mumbai.
About NCDEX Operations
Based on average daily turnover, the company is the leader in its segment. It is one of the largest commodity exchange based in India. After MCX (Multi Commodity Exchange) that allows trades in metal and energy, NCDEX is the second-largest trading platform in India.
In the segment of an agricultural commodities exchange, NCDEX is the largest. It accounted for 78% market share in the agricultural commodities segment in Fiscal 2019, 81.5% in Fiscal 2018, 79.9% in Fiscal 2017. The company has held its market-leading position from the year 2005.
As of March 2020, the exchange has 21 future contracts of agriculture commodities. It also has five agricultural commodities for options trading.
Impact of NCDEX on Indian Agriculture
- India is an agrarian country. More than 43% of the total working population in India is employed in Primary agriculture sector. Moreover, the contribution of agriculture in India’s GDP stands around 18 per cent. This data suggests that agriculture is a critical part of the Indian Economy.
- India is the largest or second-largest producer of Rice, Wheat, Milk, Fruits and Vegetables.
- Although most of these products are consumed in India only to feed the colossal population of India, India is slowly inching towards becoming a leader in the agriculture sector through exports.
- Moreover, per acre production in India is also increasing with the introduction of various farm technologies and modern equipment. In such a case, it is vital to pay attention to this sector. NCDEX is playing a crucial role in strengthening India’s growing agricultural prowess and taking it on the global front.
- Some major commodities traded on the NCDEX include Wheat, Barley, Soybean, Sugarcane etc. It also hosts some Global Benchmark contracts, like Coriander.
- Some commodities like pulses, guar, and spice are also traded on the NCDEX. There is no other platform where these items are traded. So, NCDEX is forming a crucial component of the Indian Economy.
How NCDEX is Helping Indian Agriculture and Farmers?
- NCDEX is playing an important role in establishing and maintaining transparency in future markets for crops. The transparency in operations helps farmers in the process of discovering the right price for their crops.
- Before the establishment of NCDEX, commission agents very highly active in these trades. Every farmer had to grow through them for selling their goods. They controlled the whole market and farmers had to pay hefty commissions to these agents. This process was responsible for the poor prices that farmers got for their products.
- But with the introduction of NCDEX, farmers are able to quote the right price for their crops even if they are not too active in the future market. NCDEX cuts out the agents and allows farmers to quote and get the right price for their farm products.
- Moreover, the quality standards in Indian agriculture products has improved multi-fold after the introduction of NCDEX. NCDEX has established some minimum standards for few products through contracts to raise awareness about the quality.
- This has prompted Indian farmers and peasants to opt for more modern practices and adopt a measure that will improve the product qualities to a greater extent. The results are exceptional, product quality and product yields are increasing with every passing season.
- NCDEX operates on the market to market settlement basis. This means, any difference in the price against the price quoted in the contract and the price at the day’s end, will be adjusted from other accounts. In the near future, SEBI is planning to make physical standards for settlement mandatory for multiple commodities, making the process more transparent and efficient.
NCDEX Journey So Far
It was granted the certificate for the commencement of the business on May 9, 2003, by the Registrar of the Companies, Maharashtra, and Mumbai. It is recognized as an association under the Forward Contract (Regulation Act), 1952 with Forward Market Commissions.
On September 28 2015, it became a recognized stock exchange under the Securities Contracts (Regulation) Act 1956, in terms of Section 131(B) of Finance Act 2015. It was allotted the code number 35 for settlements and trading by the SEBI on October 21 2015.
Shareholders in NCDEX
Following is the list of Shareholders of NCDEX:
- NABARD (National Bank of Agriculture and Rural Development)]
- LIC (Life Insurance Corporation of India)
- IFFCO (Indian Farmer Fertiliser Co-operative Limited)
- NSE (National Stock Exchange)
- CRISIL limited
- Punjab National Bank (PNB)
- Jaypee Capital Services limited
- Shree Renuka Sugars Limited
- Build India Capital Advisories LLP
- Omen India Joint Investment Fund
- Investcorp Private Equity Fund I
- Star Agriware Housing
- Collateral Management Limited
- Other individual shareholders
Final Words for NCDEX Limited
NCDEX is helping farmers to hedge against multiple risks and losses. Although it’s quite young as compared to other exchanges, traders and major market participants are using it to speculate and hedge. The reason is, commodity trading offers a greater margin as compared to another trading. This has resulted in more number of traders being attracted to the NCDEX.
As the demand of Indian Agri-product will rise locally and globally, due to the continuous rise of population, the importance and value of NCDEX will sky-rocket.
There are high hopes from NCDEX in coming years and we will have to wait and watch what the future holds for it.
FAQs for NCDEX IPO
What is NCDEX IPO?
This IPO offer by National Commodity & Derivatives Exchange Limited . company planning to expand capital by listing on nse and bse.
How do I apply for the NCDEX IPO?
Anyone having demat account are eligible for application. There are two method available for application.
ASBA Payment Method : The net-banking facility available for online IPO application.
UPI Payment Method: By using UPI payment method for application process.
What is the NCDEX IPO issue date?
NCDEX IPO issue period is from [●] to [●].
What is the NCDEX IPO allotment date?
Allotment date is [●] and share will transfer to your demat account on (*).
What if NCDEX IPO Shares not allotted to me?
Suppose NCDEX shares not allotted to you than refund will be credited to your linked bank account.
How to Apply NCDEX IPO through Zerodha?
Zerodha customers can apply for NCDEX through UPI’s payment gateway by Zerodha Console. Pls follow Below steps
What is the NCDEX IPO Listing date?
Listing date for this IPO is [●].
Is there any other NCDEX IPO Listing later this year?
There is no such information available regarding the further listing of State bank of India IPO.
Will I get a discount if I am NCEX Employee?
IPO details not yet announced.
What is the Lot Size of NCDEX IPO?
Minimum [●] shares (1 lot) and maximum [●] shares of lot size is available. One share price is ₹.[●] so 1 lot of [●] shares will be ₹.[●].
What is the face value of NDEX IPO?
₹10 Per Equity Share.
What NCDEX IPO symbols in NSE & BSE?
NSE: NCDEX & BSE: [●], Group: [●]
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