Amid low response, MMTC extends tender offer for 6% ICEX stake till Nov 29

State-owned MMTC has extended its tender offer to sell up to 6 per cent stake in the Reliance ADAG-anchored Indian Commodity Exchange (ICEX) for a fifth time till November 29, following a low response from investors.

MMTC has been looking for investors since July to bring down its stake from the current 9.55 per cent in the commodity bourse. However, it did not receive good response and has been extending the deadline for bid submission, sources said.

They said the company is divesting its stake in ICEX following poor trading performance and uncertainty surrounding the commodity markets.

In its latest corrigendum issued to the July tender offer on stake sale, MMTC has extended pre-bid meeting date from October 14 to November 18, while the deadline for bid submission has been deferred to November 29 from October 31.

MMTC has invited bids for acquisition of up to 3,20,00,000 shares (6 per cent stake) of face value of Rs 5 each in ICEX. It has set the minimum reserve price at Rs 9.40 per share, according to the company's tender offer.

The company said the financial bids placed by bidders should be equal to or higher than the minimum reserve price. The minimum lot size has been fixed at 27 lakh shares. Bidders should deposit an earnest money of Rs 5 lakh with the bid.

ICEX provides a nationwide online trading platform in commodity derivatives. It has put in place grading and vaulting facilities in order to facilitate deliveries.

Initially, MMTC held 26 per cent stake in ICEX, which has Reliance Exchange Next (Reliance Capital), Indiabulls Housing Finance, Indian Potash, Krishak Bharati Cooperative (Kribhco) and IDFC Bank as its key shareholders.