ICEX Raises 50 crore through Rights Is­sue

The Economic Times - - Commodities Plus - Our Bu­reau

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

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.