Kotak Bank may hike holding in ACX

Kotak Mahindra Bank may get more than a 51 per cent stake in the Ahmedabad Commodity Exchange (ACX). ACX has chalked out a Rs 50 crore business plan which aims at offloading a 51 per cent stake to Kotak Mahindra Bank for Rs 321 a share.Members of the exchange will hold the remaining 49 per cent equity in the newly corporatised exchange.

At an extraordinary general body meeting today, ACX members approved a plan to offload up to 74 per cent of its stake to Kotak if the members failed to raise the remaining 49 per cent stake.The demutualisation process of the exchange is expected to be completed in a month.

"This partnership with Kotak Mahindra Bank will enable us to take our daily turnover from Rs 50 crore to Rs 1,000 crore," Pravin Thakker, the chairman of ACX, told Business Standard. ACX is also planning to set up a warehousing facility. Besides, a spot exchange is also on the exchange's radar.

"Kotak Mahindra has a vast network across the country and ACX will go online with 2,000 terminals," Thakker added. A senior spokesperson of Kotak Mahindra Bank refused to comment on the matter.ACX will become the first regional commodity exchange in the country to go online.

While the corporate office of the demutaulised bourse will be in Mumbai, the registered office will remain in Ahmedabad. "It was a precondition that the name and registered office of ACX should not be altered," said Thakker.

Currently, the exchange deals only in castor and plans are afoot to introduce more agri commodities such as cotton seed, cotton oil and cotton oil cake.