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Metropolitan Stock Exchange of India, formerly known as MCX-SX, plans to raise ₹97 crore through a rights issue to fund its growth plans and recapitalise its clearing house Metropolitan Clearing Corporation.
The rights issue, which will be available for subscription by existing shareholders of the exchange, opens on Monday.
Growing market shareUdai Kumar, Managing Director, MSEI, said the board had approved the rights issue of ₹97 crore as the efforts of turning around the exchange were showing desired results.
“The measures taken by us have pushed up our market share in the currency derivative segment to 10 per cent from 3 per cent in the last few months. We have set a target of 15 per cent in this segment by December and make the exchange profitable by March, 2018,” said Kumar.
The fund-raising will also help the exchange improve its net worth which is currently at around ₹106 crore. The annual loss has already come down to ₹40 crore last fiscal from ₹60 crore logged in the previous fiscal, he added.
The exchange recently re-launched the Interest Rate Futures which has attracted better participation. This apart, close to 200 new companies have listed on the exchange from regional stock exchanges which suspended operations recently.
Member activation driveThe exchange has also restarted the ‘Member Activation Drive’ to bring back ‘deactivated and non-participating members’ on the exchange platform.
Abhijit Chakraborty, Chief Financial Officer, MSEI, said shareholders have shown keen interest to participate in the rights issue and the exchange had received commitments from some large shareholders.
Among existing shareholders, SBI, IL&FS, Derive Investments, Trust Investments, AADI Financial, Rakesh Jhunjhunwala, Nemish Shah, and Viral Parikh hold 5 per cent each, while Kalparaj Dharamshi and Dhanesh Shah own 4.8 per cent and 4.1 per cent, respectively.
Other shareholders include Union Bank of India (3 per cent), IFCI (3 per cent), Bank of Baroda (2.8 per cent), Punjab National Bank (2.5 per cent), Bank of India (2.5 per cent), Allahabad Bank (2.5 per cent), Axis Bank (1.5 per cent), MCX (3.4 per cent), Edelweiss (2.9 per cent), Harshil Kothari (3 per cent) and Mainak Mehta (3 per cent). Another 3.4 per cent stake is owned by minority shareholders.
Last year, the exchange had launched a rights issue to raise ₹100 crore but was able to mobilise only ₹75 crore.
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