The Metropolitan Stock Exchange of India (MSC) has once again entered the spotlight. Once considered the third-largest exchange in the country, MSC has faced years of struggles. However, with fresh investments and strategic shifts, it might finally be on the path to revival. This blog covers MSC’s journey, its future, and what it means for investors.
SEBI has launched a new index that is expected to make waves in the market. Trading for this index will officially begin on January 1st. This marks the start of an exciting phase for MSCI.
While the IPO date for MSCI has not been fixed yet, it is expected to happen on January 2nd, 2025. This IPO listing will play a significant role in the exchange's growth.
The lot size for MSCI shares will be around 25 shares, similar to the lot size of Nifty. This will help maintain a familiar trading structure for investors.
Major brokers like Zerodha, Groww, Share India, and Sikra Crop Securities have invested heavily in MSCI, contributing around ₹200 crore to the venture. This signals strong backing from top financial players in the market.
The total valuation of MSCI stands at ₹1200 crore. This impressive figure highlights the scale and potential growth of the exchange.
MSCI will trade shares of 200 companies, bringing substantial trading volume to the exchange and making it an attractive platform for investors.
MSCI has gained traction due to strong backing by brokers and financial institutions. The upcoming IPO and support from major players like Zerodha and Groww boost confidence in its growth potential.
Despite growth prospects, MSC’s financial performance has shown some challenges. In FY24, revenue declined by 25%, from ₹91 crore to ₹75 crore. Losses increased from ₹19 crore to ₹50 crore.
MSC recently approved issuing 119 crore new shares at ₹1 each, with an additional ₹1 premium, raising ₹38 crore. Key investors include Share India Securities, which invested ₹60 crore for a 5% stake, valuing MSC at ₹12,000 crore.
Founded in 2008, MSC was initially seen as a potential competitor to the NSE and BSE. It introduced the SX40 index in 2013, aimed at offering another benchmark for investors. However, the NSEL scam and subsequent leadership changes hindered MSC’s growth. Despite multiple attempts at revival, including backing from prominent investors like Rakesh Jhunjhunwala and Radhakrishna Damani, MSC failed to capture significant market share, and volumes dwindled.
With BSE’s recent IPO success and the growing retail trading boom, MSC’s revival efforts are gaining traction. The exchange aims to tap into the growth of tech-driven platforms and hopes to diversify India’s stock exchange ecosystem.
Investors are particularly excited about MSC’s focus on improving technology and cybersecurity, an area of increasing importance as market threats grow.
The Indian regulators seem to be in favor of a third exchange to help balance the duopoly of NSE and BSE, which could reduce investor risks by offering more options.
Despite new investments, MSC’s financials remain a challenge. In FY24, MSC reported a revenue drop of ₹25 crore, and its losses increased from ₹19 crore to ₹50 crore. These financial difficulties raise concerns about the exchange's long-term sustainability.
However, with strong institutional backing and the support of brokers like Zerodha and Groww, MSC may be able to reverse these financial trends and grow its market share.
For investors, MSC’s revival presents both opportunities and risks. If MSC can increase volumes, stabilize its finances, and attract more companies to list, it could become a serious player in India’s exchange ecosystem. The growing regulatory support and investment from tech-driven companies provide a sense of optimism, but whether MSC can deliver on this potential remains to be seen.
MSC’s revival is a critical moment in its history. With significant backing from major investors and a shift in focus toward technology and market diversification, MSC could eventually become a viable competitor to NSE and BSE. However, success will depend on the exchange’s ability to increase volumes and generate profitability. Investors will need to monitor the situation closely to understand whether MSC can transform its fortunes or become yet another case of missed potential.
