Mumbai, February 14: National Commodity and Derivatives Exchange Limited (NCDEX) has filed its offer document with markets regulator Securities and Exchange Board of India (Sebi) for an initial public offering (IPO) to raise about Rs 500 crore.
The IPO comprises a fresh issue aggregating up to Rs 100 crore and an offer for sale of up to 1,44,53,774 equities by shareholders, according to the draft red herring prospectus (DRHP).
The issue is expected to raise about Rs 500 crore, including fresh offering, merchant banking sources said. After BSE and MCX, this would be the third listing by an exchange and second by the commodity exchange.
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It may be mentioned here that the National Stock Exchange (NSE), country’s largest in terms of trading volume and turnover (both cash and Derivatives), is also planning to hit the market but its plans have hit the road block of Sebi’s co-location investigation. This is one of the prime reasons for delay in its IPO.
Build India Capital Advisors, Canara Bank, Indian Farmers Fertiliser Cooperative (IFFCO), Investcorp Private Equity Fund I are among the selling shareholders. Jaypee Capital Services, National Bank for Agriculture and Rural Development (Nabard), Oman India Joint Investment Fund (OIJIF) and Punjab National Bank (PNB) will also sell their stakes. Some of the key investors in NCDEX include National Stock Exchange (NSE) of India and Life Insurance Corporation (LIC) of India.
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NSE holds 15 per cent stake in the leading agricultural commodity exchange, while LIC and NABARD has 11.10 per cent each, IFFCO 10 per cent, OIJIF 10 per cent and PNB 7.29 per cent among others, according the DRHP. The exchange proposes to utilise the net proceeds towards contribution to the core settlement guarantee fund, towards net worth requirements of National Commodity Clearing Limited and general corporate purposes, as per the document.
The book running lead managers to the offer are ICICI Securities and SBI Capital Markets.
The exchange offers services across the entire post-harvest agricultural commodities value chain by utilising a varied presence, which has enabled it to create a wide network of stakeholders and market participants. It also engages in research, training and building awareness in agricultural commodities market through NCDEX Institute of Commodity Markets and Research.
The shares are proposed to be listed on the BSE and NSE.
