Stocks

Metropolitan SE plans ₹105-cr mop up to meet norms, for expansion

Our Bureau | | Updated on: Jan 19, 2018

MSEI currently has a paid-up capital of ₹194 crore. In the present holding structure of the exchange, banks/financial institutions, individuals and corporate entities appear as promoters.

Metropolitan Stock Exchange of India (MSEI), formerly MCX Stock Exchange, has decided to raise ₹80 crore through private placement of equities and debts. MSEI is also planning to raise ₹25 crore through equity issue for its clearing corporation subsidiary to meet the SEBI norms.

Udai Kumar, MD and CEO of MSEI, told reporters on Tuesday that additional equity worth ₹60 crore would be placed within next couple of months. “Around ₹20 crore worth of debt would also be raised by April. These equity and debt funds would be utilised to roll out our business expansion plan,” Kumar added.

MSEI currently has a paid-up capital of ₹194 crore. In the present holding structure of the exchange, banks/financial institutions, individuals and corporate entities appear as promoters.

Metropolitan Clearing Corporation of India, which has a paid-up equity of ₹75 crore, has to be raised to ₹100 crore by April.

5-year growth plan

MSEI CEO said the exchange management drew up a five-year growth plan starting from financial year 2017 for a clear turnaround.

MSEI CFO Abhijit Chakraborty said the exchange’s currency and interest rate derivatives segment was generating daily turnover of around ₹1,000 crore. “In February and March we have stabilised at this level”, he added.

The exchange has targeted to achieve a daily turnover of ₹6,000 crore by the end of 2016-17 from currency and interest derivatives trading. It aims to turn EBITDA positive in the fourth quarter of 2016-17. MSEI also hoped to report net profit in the second half of 2017-18, the officials said.

The turnaround strategy of MSEI is also focused on having new products, both in equities and developing alternative financial asset classes.

In case of equities, the exchange was aiming to find a niche in the bulk and block deals. The exchange is also looking into the emerging opportunities in the exchange traded funds.

Published on March 15, 2016
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