Crisil To Sell Part Stake In NCDEX To JM Fin Trustee To Meet FIPB Norm
Crisil is planning to sell part stake in NCDEX to JM FInancial Trustee Company. Crisil plans to offload 5% stake to JM Financial Trustee Pvt Ltd out of 12% stake it holds in NCDEX.
In January 2004, Crisil bought 12.1% stake in NCDEX (National Commodity Exchange) for Rs.2.6 Crore.
Crisil, which is a subsidiary of global rating agency Standard & Poor, wants to bring down its shareholding in NCDEX to 5% by September 30, in line with FIPB guidelines for foreign shareholders, where FIPB caps the shareholding of a single foreign investor in a domestic commodity exchange at 5% and has set a deadline of September 30, 2010 for this norm to be met.
JM Financial Trustee has made an application to Foreign Investment Promotion Board (FIPB) for acquiring up to 5% stake in an an existing domestic commodity exchange.
Transaction Reference: ET
Transaction Reference: ET
JM Financial is an integrated financial services group with interests in investment banking, institutional equity sales, trading, research and broking, asset management, private equity and asset reconstruction, among others.
Earlier this year, Fidelity, which held around 9% in MCX, brought down its stake to 5% by selling shares to Passport India and Intel Capital.
Last year in August, Shree Renuka Sugars purchased 5% stake in NCDEX from Goldman Sachs Investments (diluted 2%) and ICE (diluted 3%) for Rs.36.5 crore at Rs.243 a share. Goldman Sachs purchased 7% stake from ICICI Bank in 2006 for Rs.106 crore, while ICE (Intercontinental Exchange) bought ICICI’s remaining 8% stake in the same year for $37 mn.
The other shareholders in NCDEX are NSE, LIC and Nabard, which hold 15% each, Iffco (Indian Farmers Fertiliser Cooperative Ltd) which holds 12% and and Punjab National Bank and Canara Bank each have 8% stake..
Incidentally, a proposal by NCDEX to sell a strategic stake in the exchange to Delhi broking firm Jaypee Capital Services is understood to have faced opposition from Renuka Sugars, which surrendered its membership after picking up the stake from foreign investors.
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KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
|---|---|---|---|---|
| 29/11/11 | NSE - NCDEX - BSE | Private Equity | 6.84 | |
| 23/05/11 | NSE - NCDEX - Oman Investment Fund | Private Equity | Oman Investment Fund | - |
| 16/09/10 | NCDEX - Shree Renuka Sugars | M&A | Shree Renuka Sugars Limited | - |
| 27/08/10 | NCDEX - Crisil (Stake Sale) | M&A | JM Financial Trustee Company Private Limited | - |
| 18/08/09 | NCDEX - Goldman Sachs (Principal Exit) | M&A | 7.50 | |
| 17/08/09 | NCDEX - Shree Renuka Sugars | M&A | Shree Renuka Sugars Limited | 7.50 |
| 15/07/06 | NCDEX - Goldman Sachs (Principal Investments) | Private Equity | Goldman Sachs (Principal Investments) | 23.10 |
| 05/01/04 | NCDEX - Crisil | M&A | Crisil Limited | 0.56 |
| 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 |
|---|---|---|---|---|
| National Commodity & Derivatives Exchange Limited | National Stock Exchange Of India Limited | Akruti Corporate Park,1st Floor, Near G.E.Garden , L.B.S. Marg, Kanjurmarg (West) |
Multi Commodity Exchange of India Limited Universal Commodity Exchange Limited |
www.ncdex.com |
| Crisil Limited | Standard & Poor's Financial Services LLC | CRISIL House, Central Avenue, Hiranandani Business Park, Powai, Mumbai- 400076 | Credit Analysis and Research Limited | www.crisil.com |
| JM Financial Trustee Company Private Limited | J M Financial & Investment Consultancy Services Private Limited JM Financial Limited |
141 Maker Chambers III, Nariman Point - 400021, Mumbai, Maharashtra. | www.jmfinancialmf.com | |
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