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MCX firms up after RBI hikes FPIs investment limit

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Capital Market
Last Updated : Oct 03 2016 | 1:13 PM IST

Multi Commodity Exchange of India rose 2.61% to Rs 1,384.10 at 12:52 IST on BSE after the Reserve Bank of India allowed foreign investors to hike their stake in the company to upto 34% from 24% earlier.

The Reserve Bank of India (RBI) made the announcement after market hours on Friday, 30 September 2016.

Meanwhile, the BSE Sensex was up 299.99 points, or 1.08%, to 28,165.95.

On BSE, so far 1.20 lakh shares were traded in the counter, compared with average daily volume of 79,889 shares in the past one quarter. The stock hit a high of Rs 1,420 so far during the day, which is also a 52-week high for the counter. The stock hit a low of Rs 1,375.40 so far during the day. The stock hit a 52-week low of Rs 726 on 12 February 2016. The stock had outperformed the market over the past 30 days till 30 September 2016, rising 36.12% compared with 1.96% decline in the Sensex. The scrip had also outperformed the market in past one quarter, rising 33.63% as against Sensex's 2.66% rise.

The mid-cap company has equity capital of Rs 51 crore. Face value per share is Rs 10.

RBI notified that foreign institutional investors (FIIs)/registered foreign portfolios investors (RFPIs) can under the portfolio investment scheme (PIS) now invest upto 34% of the paid up capital of Multi Commodity Exchange of India (MCX). The purchases could be made through primary market and stock exchanges. RBI stated that the company's board of directors' has passed a resolution and its shareholders have passed a special resolution agreeing for enhancing the limit for the purchase of its equity shares by FIIs/RFPIs.

MCX's net profit rose 54.5% to Rs 32.81 crore on 12.5% rise in net sales to Rs 58.23 crore in Q1 June 2016 over Q1 June 2015.

MCX is India's first listed, national-level, electronic, commodity futures exchange with permanent recognition from the Government of India.

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First Published: Oct 03 2016 | 12:52 PM IST

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