MSE ties up further funding of Rs 95 crore

The Metropolitan Stock Exchange of India (MSE) today said it has secured Rs 95 crore worth of funds with few large investors and merchant bankers.
The move will help the exchange's clearing arm Metropolitan Clearing Corporation of India meet its networth requirement of Rs 300 crore as required under the Stock Exchanges and Clearing Corporations (SECC) Regulations.
MSE has raised Rs 209 crore in little over a year and has tied up further funding of Rs 95 crore with few large investors and merchant bankers, taking the total funds to Rs 304 crore, the exchange said in a statement.
The funds remaining in excess of Rs 300 crore would strengthen MSE's own net-worth and would be invested for the exchange's business plans.

"This marks an inflection point in the turnaround strategy put in place by the current management. Since July, MSE has raised Rs 97 crore from existing investors -- IL&FS, Trust Capital, Rosy Blue Securities, Radhakrishan Damani and Rakesh Jhunjhunwala.
"Moreover, it had mopped up Rs 112 crore from the rights issue in September. Also, Siddhartha Balachandran, an NRI investor had picked up 5 per cent stake in MSE recently.

"New product approvals were not forthcoming from the regulator due to the net-worth challenge, thus hurting the revival plan of the exchange," MSE managing director and CEO Udai Kumar said.
"The exchange also needed to raise sufficient capital to invest in its business, which is addressed with this raise," it added.

MSE offers trading in currency, interest rate & equity derivatives, equity cash, ETFs and debt.
Its shareholders include India's top public and private sector banks and domestic financial institutions who together hold over 34 per cent as well as has eminent shareholders like Rakesh Jhunjhunwala, Radhakishan Damani and Nemish S Shah.