Metropolitan Stock Exchange: Poised for a Promising IPO

A stock exchange has an important role to play within the capital market landscape. It functions as a center for exchange of various financial securities including common equity, fixed income securities, commodities, derivatives, stocks and bonds.

A major player that has established itself in the Indian stock exchange market is the Metropolitan Stock Exchange or MSEI. Earlier, established as the MCX Stock Exchange Ltd. MSEI has evolved over the years to emerge as one of the significant organization profiles in the Indian financial system. The MSEI is a stock exchange at the national level that trades in Equity, Equity Derivatives, Currency Derivatives, Debt, and SME electronic platforms with inclusive licensing. It is among the eight stock exchanges approved by the SEBI. The face value of each Metropolitan Stock Exchange share is ₹ 1. Metropolitan Stock Exchange share price is ₹ 1.2 per share. 

The MSEI was established in Mumbai and has been operating since the year 2008. As a reputed stock exchange, it effectively traded in  equities, derivatives, and debt instruments.

Equity Trading: The MSEI entails a mechanism for trading shares in the listed firms through a stock exchange market. Investors can trade in  equity shares on the exchange.

Derivatives Trading: It provides derivatives contracts on an equity index and individual equity shares as well. These instruments help investors to mitigate risk of losses or even gamble on price changes.

Currency Derivatives: MSEI provides operating trading in currency derivatives where the participants can manage foreign exchange risk.

Debt Segment: The debt segment works in government bonds, corporate bonds, and fixed income securities.

SME Platform: MSEI helps the SMEs to list on the platform. 

MSEI provides a very transparent and technology-oriented online trading and investing facility for Capital Market, F&O, Interest Rate Derivatives, Currency Derivatives, Exchange Traded funds and Debt instruments and is further enhancing its technological functioning. This is going in a bid to establish firm grounds in the equity segment – not mentioning development of state of the art Mutual Fund and SME platforms to enhance it’s closeness with its members as well as clients by providing end solution to their trading requirements.

Products Traded on MSEI

Currency Futures & Options: This is offered in USD/INR, GBP/INR, EUR/INR, and JPY/INR cross currency futures contracts. 

Interest Rate Futures: Futures contracts on 6 GOI Bonds with maturity period of 6 years, 10 years, and 13 years.

Equity Segment: Trading in stocks of 1348 companies.

Equity Derivatives: Futures and Options on the Metropolitan Stock Exchange  Index SX40.

Exchange-Traded Funds (ETFs): Trading in 49 Exchange Traded Funds.

Sovereign Gold Bonds (SGBs): Dealing in 42 SGBs on the exchange.

Financial Performance

Over the last five years, MSEI has demonstrated consistent growth. Thus, the revenue has increased by 13.99% CAGR,  over the year and bottom-line losses have fallen by a 19.37% CAGR. The losses have reduced from ₹31.67 crore in FY23 to ₹18.66 crore (a mere 41.07% reduction) and there was a considerable improvement in the topline figure; it increased by 124.45%.

Financials (in ₹ Cr) ​	FY22	FY23	FY24
Total Revenue	24	54	15
Gross Profit	23	53	15
EBITDA	-21	-2	-24
PBIT	-31	-12	-29
PBT	-30	-20	-30
Net Income	-31	-19	-30
EPS	-0.06	-0.04	-0.06

Market Capitalization

The market capitalization of MSEI is ₹577 crore based on the current market price of ₹1 per share. As compared to other BSE Ltd at present is ~₹35,701 crore, though the market capitalization of the listed companies on NSE recently crossed USD 4 trillion (Rs 335 lakh crore). Multi Commodity Exchange of India Ltd. (MCX): The market capitalisation is said to be at ~ ₹19,039 crore.

Prominent Investors

The Exchange is owned by the shareholders who include public and private sector banks, domestic institutions, and private investors. Other prominent shareholders include the State Bank of India, Union Bank of India, the HDFC Bank, the Axis Bank, the MCX, IL&FS, the Radhakishan Damani, Siddharth Balachandran and many others.

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Current Market Position

As of the latest updates, MSEI unlisted shares have been a topic of interest among investors. The anticipated MSEI upcoming IPO is expected to provide liquidity and open new avenues for capital raising. The face value of each Metropolitan Stock Exchange share is ₹ 1. Metropolitan Stock Exchange share price is ₹ 1.2/share. IPO price band is not disclosed yet. The MSEI Pre IPO market activities indicate investor confidence in the exchange's potential. With the upcoming public offering, the MSEI share price is expected to reflect the exchange's growth prospects and market performance.

Conclusion

As the Metropolitan Stock Exchange of India Ltd. (MSEI) gears up for its upcoming IPO, it stands at a significant juncture in its growth journey. The MSEI IPO is expected to not only provide liquidity but also enhance the exchange’s visibility and market presence. Investors keen on exploring opportunities in the Indian stock market should keep a close watch on MSEI Pre IPO activities and the Metropolitan Stock Exchange share price. However, potential investors should also consider the ongoing challenges and financial hurdles the exchange faces. While the IPO details are not fully disclosed yet, understanding these aspects can provide a clearer picture of what to expect from this significant market event.

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