ICEX Raises 50 crore through Rights Issue
Mumbai: Reliance Capital-anchored Indian Commodity Exchange (ICEX) raised .₹ 50 crore through a maiden rights issue as part of its plan to recapitalise the bourse, which suspended operations in April 2014 after its networth was eroded by successive losses.
The exchange intends to recommence operations in June this year, subject to Sebi approval. The rights issue was subscribed to by the promoter and other investors at 100% premium to the face value of .₹ 5 per share. This values the bourse at .₹ 250 crore, the company said. ET had reported in January last year that the exchange had planned a rights issue to revive itself. Sebi stipulates that no single entity, except certain domestic institutions like banks can hold over 5% equity of a stock exchange. Commexes have been deemed recognised stock exchanges after the government merged their erstwhile regulator Forward Markets Commission with Sebi last year. The Sebi roadmap mandates that a national commodity bourse must have a minimum net worth of .₹ 100 crore by May next year. It is learnt that ICEX might raise further capital through another rights issue to meet this regulatory norm. The only two successful commodity exchanges –– MCX and NCDEX –– commenced operations in 2003. Metals and energy exchange MCX had a net worth of .₹ 1,389 crore in FY15 while that of NCDEX was .₹ 390.7 crore.
The rights issue was subscribed to by the promoter at 100% premium to the face value of 5 a share