MCX gets bids for 14.83 crore warrants of Metropolitan SE

Multi Commodity Exchange has received bids for 14.83 crore warrants of Metropolitan Stock Exchange against 40 crore warrants it put on the block.

Of the 58.26 crore warrants held by MCX, it had put 20 crore on the block, while retaining the rest. The warrants need to be converted into equity shares in the ratio of 1:1 by June 19 in line with the three-year validity provided at the time of allotment.

MCX in a statement said the company has sold 14.82 crore warrants of Metropolitan SE convertible into an equal number of equity shares to various investors, subject to the applicable provision with respect to ownership of stock exchanges. The bids for 14.83 crore warrants were received from 150 investors, said sources.

‘Fit & proper’ criteria With little interest coming in from large institutional investors, many employees of MCX have voluntarily participated in the bidding process. Interestingly, it is not clear how SEBI will ascertain the ‘fit and proper’ criteria of all the investors who get the allotment.

The board of Metropolitan SE will meet next week to decide on whether to extinguish the unsold warrants or transfer it to an escrow account, said sources. The networth of the stock exchange will increase to about ₹133 crore from ₹118 crore with the recent warrant sale, said sources.

The poor response was largely due to the high base prices of ₹1.10 for the bidding.

Apart from warrants, MCX owns 4.10 per cent equity stake in Metropolitan SE.

Incidentally, the Metropolitan SE itself has announced a 1:1 rights issue at ₹1 a share. Though MCX did not mention the average price quoted by bidders, sources expect it to be at the base price.

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