MCX sells 9.55% for Rs 420 crore

Deal values exchange at Rs 4,400 cr, brings down promoters' stake to 37.45%.

The Multi Commodity Exchange (MCX) of India has sold a 9.55 per cent stake to ICICI Venture, Infrastructure Leasing & Financial Services and the Kotak Group for around Rs 420 crore.

The deal values the exchange, promoted by Financial Technologies, at Rs 4,400 crore and brings down the promoters' stake to 37.45 per cent.

While ICICI Venture, ICICI Bank's private equity arm, has bought 3.55 per cent, IL&FS has picked up 5 per cent while Kotak's India Growth Fund has taken 1 per cent, an MCX statement released here today said.

MCX is the world's third biggest gold bourse and accounts for more than four-fifths of gold futures traded in India.

MCX offers futures trading in 56 commodities and has leadership position in commodity derivatives trade with a total average daily turnover of $3.5 billion. Fidelity has 9 per cent stake in the exchange, while Citigroup and Merrill Lynch own 5 per cent each.

Jignesh Shah, managing director & CEO, MCX, said the promoters are not looking at further dilution of stake at this point. "This milestone is a testimony to the quality of the institute we have built, in and from India, where the global and domestic best have converged," he said.

The funds raised will be used to finance the growth of the exchange and allied services including collateral management, he said.

Early this quarter, Financial Technologies had obtained mandatory permission from the commodity market regulator, the Forward Markets Commission (FMC) to bring its equity down to 37 per cent.

Commenting on the deal, K V Kamath, MD & CEO of ICICI Bank, said Financial Technologies is creating the next generation financial markets within India and outside, where the benefits of technology and price transparency empowers the masses to benefit from globalisation.

Ravi Parthasarthy, MD & CEO of IL&FS, said, the strategic tie-ups underscore the global acknowledgement of MCX as a strategic player on the world's commodity stage.

MCX's rival National Commodity & Derivatives Exchange (NCDEX) recently sold 7 per cent stake to Goldman Sachs.