ADAG Plans To Buy 26% In ICEX
Anil Dhirubhai Ambani Group (ADAG) is planning to buy 26% stake in 
Indian Commodity Exchange (ICEX) from Indiabulls Financial Services.
Indiabulls holds 40% in ICEX. ICEX started its operations in November 2009.
ICEX is a screen based on-line derivatives exchange for commodities. It was originally promoted by Indiabulls and MMTC, but Indiabulls was forced to bring in other investors - including Indian Potash, Kribhco and Infrastructure Development Finance Company — to comply with regulatory guidelines.
Transaction Reference: BS
This is ADAG’s second attempt to gain access of a commodity derivatives exchange. Earlier, his company Reliance Money had attempted to acquire a 26% in National Multi Commodity Exchange of India (NMCE), but received FMC permission for only a 10%. It is now treating that as a financial investment.
ADAG is planning to gain a foothold in the exchanges business, starting with the commodities segment. It has already set up Reliance Spot Exchange, which is headed by former Bombay Stock Exchange CEO Rajnikant Patel. While the company has received licences to trade from some state governments and Agriculture Produce Marketing Committees, its request for certain exemptions from FMC has been pending for the last few months.
With a commodity futures exchange in its portfolio, Reliance will be able to derive benefits from spot as well as futures businesses.
The government has accorded in-principle approval to a proposal from IT People, Iffco, Bombay Bullion Exchange and Rashtriya Chemicals & Fertilisers to start Universal Commodity Exchange.
Indore-based National Board of Trade has also sought FMC permission to upgrade from being a regional exchange to a national player.
Delhi-based broker Gaurav Arora, who controls Jaypee Capital, is planning to acquire 26% stake in National Comodity & Derivatives Exchange (NCDEX). He is also the anchor investor in United Stock Exchange.
George Soros's Soros Fund Management is planning to pick up 4% stake in BSE for about $40 Mn (around Rs.185 CR) valuing BSE at $1 Bn.
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KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
|---|---|---|---|---|
| 03/01/11 | Indiabulls Financial - Indian Commodity Exchange - Reliance ExchangeNext | M&A | Reliance ExchangeNext Limited | - |
| 12/02/10 | ICEX-Looking for buyer | M&A | - | |
| 16/09/09 | Indian Commodity Exchange - IDFC | M&A | Infrastructure Development Finance Company Limited | - |
| Date | Type | Buyer | Target | Size ($mn) | State |
|---|---|---|---|---|---|
| 11/05/12 | M&A | Warburg Pincus International | Future Capital Holdings Limited (Co.) | - | Planned |
| 08/05/12 | M&A | HCL Group | DLF Pramerica Life Insurance Company Limited | - | Planned |
| 08/05/12 | M&A | AEGON | Aegon Religare Life Insurance Company Limited | - | Rumor |
| 02/05/12 | Private Equity | International Finance Corporation | MAS Financial Services Limited | 12.00 | Planned |
Company |
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| Name | Promoters | Office | Competitor | Website |
|---|---|---|---|---|
| Indiabulls Financial Services Limited | Sameer Gehlaut | F-60, Malhotra Building, 2nd Floor, Connaught Place,New Delhi - 110001,India |
Future Capital Credit Limited Microsec Financial Services Limited |
www.indiabulls.com |
| Indian Commodity Exchange Limited | Indiabulls Financial Services Limited MMTC Limited |
E-29, First Floor, Connaught place. | Multi Commodity Exchange of India Limited | www.icexindia.com |
| Reliance ExchangeNext Limited | Reliance Capital Limited | 7th Floor, Wing B, Trade World, Kamala Mills, S. B. Marg, Lower Parel (West) | www.reliancecapital.co.in | |
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