Ahmedabad-based National Multi-Commodity Exchange (NMCE) is planning to raise Rs 80 crore by way of equity and debt to fund its expansion. The exchange has appointed two leading merchant bankers based in Mumbai to broker the deal and is in talks with various leading financial institutions, according to informed sources.
Sources said NMCE could dilute up to 20 per cent through fresh issue of equity. The ratio of equity and debt is, however, not known. Industry sources say the valuation of NMCE could be Rs 300-400 crore.
The commodity bourse, primarily dealing with agri products, was also looking at structured non-convertible debentures, sources in investment banking said.
Poonam Gupta, vice-president, business development, refused to go into the details beyond saying that the exchange was aiming to raise equity for expansion. She said the exchange aimed to revive gold trading, besides setting up spot markets in places like Gujarat and Rajasthan, before moving on to UP and other agri-producing states.
NMCE is also looking to roll out knowledge management centres, beginning with places like Kochi and Ahmedabad, with an aim to tie up with business schools on the franchise model. “We are also aggressively getting into marketing and promotional activities, something which we have not done for quite some time,” she said.
The exchange is looking at adding 80-100 warehouses this fiscal. It has 2,000 and has plans for 400 more. It also plans to provide a common platform to existing members by sharing feeds of prices on a common Computer to Computer Terminal Link (CTCL).
The Central Warehousing Committee, which holds about 24 per cent in the exchange, has over 500 warehouses that the bourse is currently using. The Kailash Gupta-owned Neptune Overseas is the leading promoter with 25 per cent stake.
Last year, Anil Ambani’s Reliance Money Infrastructure Ltd had picked up 10 per cent in the exchange when the agri-commodity markets were down, mainly due to ban on futures trading in certain agri commodities, sources said.
Reliance had infused Rs 10 crore at that time, with a plan to pick up 26 per cent later. However NMCE had so far given only 10 per cent to Reliance, sources said.
NMCE’s average daily turnover jumped to over Rs 1,600 crore in March from about Rs 400 crore in January. “Our target is to achieve Rs 3,500 crore daily turnover by the end of this year,” Gupta told Business Standard.
The exchange is looking at augmenting its position in rubber, black coffee, castor, coffee and cotton, besides consolidating its position in bullion, metals, rape seed, mustard seed and chana.
