Cooperative major IFFCO has increased its stake in commodity exchange NCDEX by buying a 1.12% stake from Renuka Sugars for about Rs 10 crore.
IFFCO's stake in National Commodity & Derivatives Exchange Ltd (NCDEX) has now reached 10%.
Last week, leading sugar firm Shree Renuka Sugars Ltd sold a 7.5% stake in NCDEX to investors, including the National Stock Exchange of India (NSE) and Indian Farmers Fertiliser Cooperative Ltd (IFFCO), for Rs 66.54 crore.
"We have bought 1.12% stake in NCDEX at Rs 175 per share," a senior IFFCO official said.
Of the stake sold by the sugar major, 5% was acquired by the NSE, an original promoter of NCDEX.
Renuka Sugars sold a 1.12% stake to IFFCO and another 1.38% to Star Agriwarehousing and Collateral Management.
Following the transaction, Renuka Sugars holds 5% in NCDEX, the country's second-largest commodity exchange.
NSE is now the largest shareholder in NCDEX with a 15% stake, followed by Life Insurance Corporation of India and National Bank for Agriculture and Rural Development, with 11.1% each.
IFFCO and Oman India Joint Investment Fund have a 10% stake each in NCDEX.
IFFCO is the largest soil nutrient producer in the country, with an annual output of 4.4 million tonnes of urea and 4.3 million tonnes of complex fertilisers.
Besides, IFFCO owns shares in Indian Potash Ltd, Industries Chimiques du Senegal, Oman India Fertiliser Company in Oman and Jordan India Fertiliser Company.
The company is also present in the insurance sector through a joint venture firm, IFFCO-Tokio General Insurance Ltd.
