IDBI Bank Buys 10% Stake In UCX For Rs 10 Cr
IDBI Bank has bought 10% stake in Mumbai-based Universal Commodity Exchange (UCX) for Rs.10 Cr. The deal values UCX at Rs.100 Cr.
The advantage for IDBI with this deal is that being the only bank among the promoters in UCX, all transactions of the exchange will be routed through IDBI.
Transaction Reference: Economic Times
Government rules require promoters of a new commodity exchange to bring in Rs.100 Cr as equity capital to start operations. It also allows the main promoter or anchor investor in a new commex to hold up to 40% and to bring this down to 26% within five years of commencement.
UCX main promoter Ketan Seth holds 40% stake in the bourse through IT People India, financial and exchange technology solutions provider, which he has to reduce to 26% within five years of the bourse coming on line.
Indian Farmers Fertiliser Cooperative (IFFCO) is Sheth's major partner with 15% stake in UCX.
UCX will be the sixth national level commex which received the in-principle approval from the commodity futures market regulator, Forward Markets Commission (FMC), to go live last August.
Indiabulls-promoted Indian Commodity Exchange went live in November 2009, a year after the government laid the framework for the establishment of more national commexes.
Other commodity exchanges in India are Financial Technologies-promoted Multi-Commodity Exchange (MCX), National Commodity and Derivatives Exchange (NCDEX) and Ahmedabad-based National Multi-Commodity Exchange (NMCE). R-ADAG promoted International Multi Commodities Exchange and Kotak pormoted Ahmedabad Commodity Exchange (ACE) have also got approval to start trading.
PSU banks like SBI , Nabard, Corporation Bank , UBI, Bank of Baroda are shareholders of MCX, while Punjab National Bank and Canara Bank hold stakes in NCDEX.
Foreign investors in existing bourses include Fidelity, NYSE Euronext and Merrill Lynch, which hold 5% each in MCX, and Goldman Sachs and Intercontinental Exchange, which hold 4% each in NCDEX.
IDBI Bank is a promoter of NSE, and National Securities Depository Limited.
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KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
|---|---|---|---|---|
| 14/03/12 | UCX - NABARD | Private Equity | National Bank For Agriculture and Rural Development | 3.21 |
| 10/01/12 | Universal Commodity Exchange (UCX) - Oman Investment Fund | Private Equity | Oman Investment Fund | 2.63 |
| 09/01/12 | Universal Commodity Exchange - Rural Electrification | M&A | Rural Electrification Corporation Limited | 3.05 |
| 30/06/11 | Universal Commodity Exchange (UCX) - IDBI Bank | Private Equity | IDBI Bank Limited | 2.24 |
| 24/03/11 | Universal Commodity Exchange (UCX) - IFFCO | Private Equity | Indian Farmers Fertiliser Cooperative Limited | 2.23 |
| 13/09/10 | Universal Commodity Exchange (UCX) - Rabobank | Private Equity | Rabobank | - |
| 01/02/10 | Universal Commodity Exchange - Spice Investments | M&A | Spice Investments and Finance Advisors Private Limited | 3.24 |
| Date | Type | Buyer | Target | Size ($mn) | State |
|---|---|---|---|---|---|
| 11/05/12 | M&A | Warburg Pincus International | Future Capital Holdings Limited (Co.) | - | Planned |
| 08/05/12 | M&A | AEGON | Aegon Religare Life Insurance Company Limited | - | Rumor |
| 08/05/12 | M&A | HCL Group | DLF Pramerica Life Insurance Company Limited | - | Planned |
| 02/05/12 | Private Equity | International Finance Corporation | MAS Financial Services Limited | 12.00 | Planned |
Company |
||||
| Name | Promoters | Office | Competitor | Website |
|---|---|---|---|---|
| IDBI Bank Limited | Government Of India | IDBI Tower WTC Complex, Cuffe Parade |
State Bank of India ICICI Bank Limited The Catholic Syrian Bank Limited Dhanlaxmi Bank Limited Indian Overseas Bank IndusInd Bank Limited |
www.idbi.com |
| Universal Commodity Exchange Limited | Ketan Sheth | Exchange House, Building No.8 (105), Sector II, Millenium Business Park, Mahape |
Multi Commodity Exchange of India Limited National Commodity & Derivatives Exchange Limited |
www.ucxindia.com |
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