NCDEX IPO Review, Dates, Allotment, Size, Subscription, Bid Details, GMP & RHP

Let’s have a detailed review of the company and analytics of the NCDEX Limited IPO release date, IPO offer price, subscription, NCDEX IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.Stock Broker Complaints


NCDEX IPO Review & Ratings

IPO Ratings & Review
CriteriaRatings
Industry Sentiments7.4/10
Industry Ranking7.1/10
Company Background8.2/10
Company Reputation7.7/10
Competitive Edge7.2/10
Financial Statements8.0/10
Popularity Index7.6/10
Promoters Reputation8.0/10
Retail Appetite7.5/10
Top Brokers Review8.1/10
Overall Ratings7.5/10
Star Ratings★★★★☆

Summary of NCDEX IPO

NCDEX IPO

National Commodity & Derivatives Exchange Limited (“Exchange”) is a leading agricultural commodity exchange in India. The Exchange has maintained its leadership position since 2005, in the agricultural commodity derivatives market, in terms of ADTV . Further, the Exchange is a professionally managed company, which is driven by technology.

Some of their key investors include National Stock Exchange of India Limited (“NSE”), Life Insurance Corporation of India (“LIC”), National Bank for Agriculture and Rural Development (“NABARD”), Indian Farmers Fertiliser Co-operative Limited (“IFFCO”), Oman India Joint Investment Fund, Punjab National Bank, Canara Bank, Build India Capital Advisors LLP, and Investcorp Private Equity Fund I (formerly known as IDFC Private Equity Fund III).

From FY 2016-17 to FY 2018-2019, as per the Restated Financial Statements

  • NCDEX has a market share of 78.0%, 81.5%, 79.9% and 78.1% in the agricultural commodity segments, based on average daily turnover (by value) (“ADTV”) for the six month period ended September 30, 2019, Fiscal 2019, Fiscal 2018 and Fiscal 2017,

The exchange is professionally managed and does not have an identifiable promoter in terms of the sebi icdr regulations. The lead managers to the issue are ICICI Securities Limited and SBI Capital Markets Limited*. The Registrar to this issue is Link Intime India Private Limited.



NCDEX IPO Dates / Launch Date

The opening and the closing date of NCDEX IPO is not known yet.


NCDEX IPO Subscription 

Day / DateQIBNIIRIITotal Subscription
1st Day – 
2nd Day – 
3rd Day – 
4th Day – 
Shares Offered or Net Issue

The shares subscribed by the public will be updated here.


NCDEX IPO Allotment Status

Here, you can find the Allotment Status of this IPO.

Allotment of Equity Shares pursuant to the Fresh Issue and transfer of the Offered Shares of the Promoter Selling Shareholders pursuant to the Offer for Sale to the successful Bidders. However, the Allotment status is not yet disclosed.

NCDEX IPO Listing Date

Find the dates below on basis of allotment, refund, listing and more:

Basis of Allotment Finalization
Refunds Initiation
Credit of Shares to Demat Account
Share Listing Date

NCDEX IPO Price Band / Cash Price

The face value of each share is Rs.10, and the cash price of the IPO is [●]. 


NCDEX IPO Size

This Initial Public Issue of [●] Equity Shares of Rs.10 each for cash at a price of Rs.[●] per equity share aggregating to Rs.[●] Million.


NCDEX IPO Share Offering

Fresh Issue: The Fresh Issue of [●] Equity Shares by their Company of Rs.10 each at a price of [●] per equity share aggregating to Rs.1,000 Million,

Offer: The Net Offer of up to [●] Equity Shares of Rs.10 each at price of Rs.[●] per Equity Shares aggregating to Rs.1,000 Million

Offer for Sale: Offer for sale consists of Up to 14,453,774 Equity Shares of face value of Rs.10 each for cash at a price of Rs.[●] per Equity Share aggregating Rs.[●] Million.


NCDEX Limited – Company Overview

National Commodity & Derivatives Exchange Limited (“Exchange”) is a leading agricultural commodity exchange in India. Agricultural commodities such as castor seed, coriander, cumin, guar gum, chana and moong, which are exclusively traded on the Exchange platform, form an important component of India’s global trade of agricultural commodities.

Value chain participants such as processors, traders, stockists and FPOs rely on the Exchange’s derivative contracts for price discovery and risk mitigation, which may serve as global benchmarks for pricing.

They offer services across the entire post-harvest agricultural commodities value chain by utilising their varied presence, which they believe has enabled them to create a wide network of stakeholders and market participants.

As of September 30, 2019, the Exchange’s network comprised 380 members, 13,316 terminals, nine WSPs, 12 clearing banks, 41 financial institutions and 246 FPOs representing 461,619 farmers, thereby encouraging a virtuous cycle. In addition, as on September 30, 2019, NeML’s network comprised 171 mandis and had approximately 8,900 members and 7.8 million farmers, connected to its platform through the various projects managed by it.

NCDEX Organisational Structure 

They have created a modern agricultural commodities trading ecosystem with various offerings across four business verticals, being the following:

a) futures and options trading in agricultural commodities through the Exchange;

b) clearing and settlement of trades through National Commodity Clearing Limited (“NCCL”), a registered clearing corporation;

c) an online commodities spot market, through NCDEX e-Markets Limited (“NeML”); and

d) issuance of electronic negotiable warehouse receipts for commodities, and provision of related services, through National E-Repository Limited (“NERL”), a WDRA registered repository.

Further, they also engage in research, training and building awareness in the agricultural commodities market through NCDEX Institute of Commodity Markets and Research (“NICR”).

NCDEX – Additional Holdings

In addition to the above, they have (i) established a joint-venture between the Government of Karnataka (“GoK”) and NeML, called Rashtriya e Market Services Private Limited (“ReMS”), which renders support to the agricultural market reform agenda of GoK, and (ii) hold 34.21% of shareholding in Power Exchange India Limited (“PXIL”), a power market infrastructure institution providing an electronic platform for transactions in power and allied products.

NCDEX – Innovations

They believe that they have, from time to time, made innovative interventions to modernize the Indian agricultural commodities ecosystem.

Some of their key innovations include electronic record keeping and enabling electronic transfers of agricultural commodities through their proprietary system, Comtrack, development of an electronic platform for spot trading of agricultural commodities, issuance of electronic negotiable warehouse receipts for agricultural commodities stored in registered warehouses.

It follows by enabling an electronic commodity pledging mechanism, mandi modernisation, standardisation of agricultural commodity specifications across India for derivatives trading, development of modern warehousing practices, and connecting farmer producer organisations (“FPOs”) to futures markets.

NCDEX Notable Pressence

They offer services across the entire post-harvest agricultural commodities value chain by utilising their varied presence, which they believe has enabled them to create a wide network of stakeholders and market participants.

As of September 30, 2019, the Exchange’s network comprised 380 members, 13,316 terminals, nine WSPs, 12 clearing banks, 41 financial institutions and 246 FPOs representing 461,619 farmers, thereby encouraging a virtuous cycle.

In addition, as on September 30, 2019, NeML’s network comprised 171 mandis and had approximately 8,900 members and 7.8 million farmers, connected to its platform through the various projects managed by it.

NCDEX Limited: Business strategies

  • Scale participation for existing portfolio of products and services
  • Develop customized trading platforms for use by large institutions
  • Design and develop new products which are relevant to the Indian markets
  • Onboarding new classes of participants and developing accessible products
  • Increase the footprint and market presence of existing product offerings and generate new sources of revenue

NCDEX Ltd – Financial Statements

On the basis of Standalone statement:

Amount (in INR & Million)
30-Sep-1931-Mar-19Mar-1831-Mar-17
Total Assets12,198.228,458.078,509.289,862.84
Total Revenue926.041,947.471,621.851,663.27
Total Expense889.221,807.111,698.291,575.91
Profit After Tax73.40156.20(108.79)215.70

Earnings per Equity Share (in Million)

Amount (in INR & Million)
30-Sep-19Mar-1931-Mar-1831-Mar-17
Basic & Diluted1.603.22(2.09)4.26

NCDEX IPO – Promoters

The exchange is professionally managed and does not have an identifiable promoter in terms of the sebi icdr regulations

List of Related Parties (Key Managerial Personnel)

  • Seema Nayak, Company Secretary and Compliance Officer
  • Atul Roongta, Chief Financial Officer

Interest in promotion of the Company

Their Group Companies have no interest in the promotion of the Exchange.

Interests of Promoter in property of their Company

Their Group Companies have no interest in the properties acquired by the Exchange within the preceding three years from the date of this Draft Red Herring Prospectus or proposed to be acquired by the Exchange as on the date of this Draft Red Herring Prospectus, or in any transaction by the Exchange for acquisition of land, construction of building or supply of machinery, etc.


NCDEX IPO Offer Details or Issue Details

Particulars No. Of Equity Shares
 Equity Shares Offered Up to [●] Equity Shares, aggregating up to Rs.[●] Million
 Of which:
Fresh Issue[●] Equity Shares, aggregating up to Rs.1,000 Million
Offer for SaleUp to 14,453,774 Equity Shares, aggregating up to Rs.[●] Million
Of which:
QIB Category Not less than [●] Equity Shares
Of which:
Anchor Investor PortionUp to [●] Equity Shares
Net QIB Portion (assuming Anchor Investor Portion is fully subscribed)Up to [●] Equity Shares
Non-Institutional PortionNot more than [●] Equity Shares
Retail PortionNot more than [●] Equity Shares
 Equity Shares outstanding prior to the Issue50,676,000 Equity Shares
 Equity Shares outstanding after the Issue[●] Equity Shares

NCDEX IPO Issue Object

The Exchange proposes to utilise the Net Proceeds towards funding the following objects:

  • Contribution to the Core SGF and towards net worth requirements of NCCL; and
  • General corporate purposes.

Further, the Exchange expects to receive the benefits of listing of the Equity Shares on the Stock Exchanges, enhancement of the Exchange’s brand name and creation of a public market for the Equity Shares in India.

NCDEX Limited: Key Strength

  • Leading agricultural commodity derivatives exchange in India by market share
  • Domain expertise in post-harvest agricultural commodity value and supply chain
  • Strong connections with market participants and service providers across all levels of the post-harvest agricultural commodities value and supply chain
  • Established relevant benchmarks for price discovery
  • Robust risk management framework
  • Future readiness of their systems, which are capable of handling growth in trading volumes, supplemented by in-house capability to develop supporting technologies

NCDEX IPO – Basis of the Offer Price

The Offer Price has been determined by their Company and the Selling Shareholder in consultation with the Lead Managers on the basis of the key business strengths.

Qualitative factors are:

  • They are the leading agricultural commodity derivatives exchange in India by market share;
  • They have domain expertise in post-harvest agricultural commodity value and supply chain;
  • The company has strong connections with market participants and service providers across all levels of the post-harvest agricultural commodities value and supply chain;
  • They have established relevant benchmarks for price discovery;
  • They have a robust risk management framework; and
  • The future readiness of their systems, which are capable of handling growth in trading volumes, supplemented by in-house capability to develop supporting technologies.

NCDEX IPO – Quantitative Factors

Basic & Diluted EPSRONW in %NAV (Rs.)
31-Mar-174.264.78%
31-Mar-18(2.09)(2.49)%
*31-Mar-193.223.42%90.17
  • Price to Earnings (P/E) ratio in relation to Price band of Rs.[●] of Rs.[●] per each
ParticularsP/E ratio
Highest43.9
Average43.9
Lowest43.9

NCDEX Limited: Competitive Peers

Face Value (Rs.)P/EEPS  (Rs.)Return on Net Worth (%)NAV per share (Rs.)
NCDEX Limited10[●]3.223.4290.17
Listed Peers
Multi Commodity Exchange of India Limited1043.928.811.6%245.3

NCDEX IPO Lead Managers

Lead Managers
ICICI Securities Limited
ICICI Centre
H.T. Parekh Marg, Churchgate
Mumbai 400 020, Maharashtra
Telephone no.: +91 22 2288 2460
E-mail: ncdex.ipo@icicisecurities.com
Investor grievance e-mail: customercare@icicisecurities.com
Website: www.icicisecurities.com
Contact Person: Arjun A Mehrotra / Anurag Byas
SEBI Registration No.: INM000011179SBI Capital Markets Limited*
202, Maker Tower ‘E’, Cuffe Parade
Mumbai 400 005, Maharashtra
Telephone no.: +91 22 2217 8300
E-mail: ncdex.ipo@sbicaps.com
Investor grievance e-mail: investor.relations@sbicaps.com
Website: www.sbicaps.com
Contact Person: Karan Savardekar
SEBI Registration No: INM000003531

NCDEX IPO Registrar to Offer

Registrar to the Offer
Link Intime India Private Limited
C-101, 1st Floor, 247 Park
Lal Bhadur Shastri Marg, Vikhroli (West)
Mumbai 400 083,Maharashtra
Telephone no: +91 22 4918 6200
E-mail: ncdex.ipo@linkintime.co.in
Investor grievance e-mail: ncdex.ipo@linkintime.co.in
Website: www.linkintime.co.in
Contact Person: Shanti Gopalkrishnan
SEBI Registration No.: INR000004058

NCDEX IPO – Other Details

  • Statutory Auditor – M/s. K. S. Aiyar & Co., Chartered Accountants
  • Legal Counsel to the Company – AZB & Partners
  • Bankers to the Company – HDFC Bankt

NCDEX IPO Review by Top 10 Stock Brokers

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ICICI Direct7.3/107.3/108.7/108.1/107.1/10
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Motilal Oswal7.1/107.1/108.6/108.3/107.2/10

NCDEX IPO Grey Market Premium

The NCDEX IPO Grey Market Premium price is Rs X, the Kostak rate is Rs X and the Subject to Sauda is X. 


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