MCX stocks recover from lows after NSEL crisis, up 84% in 2 weeks

Sep 09 2013, 20:59 IST
Comments 0
SummaryBoth NSEL and MCX are promoted by by Jignesh Shah-led Financial Technologies (India) Ltd (FTIL).

Shares of Multi Commodity Exchange have surged over 84 per cent over the past fortnight after suffering a massive fall that was triggered by the crisis at National Spot Exchange Ltd (NSEL).

Both NSEL and MCX are promoted by by Jignesh Shah-led Financial Technologies (India) Ltd (FTIL).

Between July 31, when NSEL suspended trade following government directive and the payment crisis, and August 16, MCX scrip fell by as much as 62 per cent. During this period, market value of the company tumbled by Rs 1,371 crore.

However, since August 17, the stock has surged 84.21 per cent, despite problems associated with the group and currently commands a market capitalisation of Rs 2,285 crore.

On the other hand, shares of FTIL have fallen by 74.56 per cent since July 31 till date. The stock slumped to its one-year low level of Rs 102.05 on August 30.

FTIL holds 26 per cent stake in MCX, the only listed commodity exchange in the country.

NSEL, is presently facing a crisis of settling Rs 5,600 crore dues to 148 members/brokers, representing 13,000 investors, after its trade was suspended on July 31 following government orders.

As of June 30, FIIs held 38.40 per cent stake in MCX, while DIIs have 19.98 per cent and non-institutions 15.62 per cent stake.

MCX was listed in March 2012 and touched its all-time high of Rs 1,617 in November.

On August 1, MCX had clarified: "In response to the media queries regarding impact of National Spot Exchange Ltd (NSEL) Circular, if any, on MCX, Shreekant Javalgekar, MD & CEO, MCX has clarified that there will not be any impact of NSEL's circular on the operations and financials of MCX."

MCX again issued a statement on August 6 to stock exchanges clarifying that MCX and NSEL are totally different entities with no financial commitments or exposure to each other whatsoever.

Ads by Google
Reader´s Comments
| Post a Comment
Please Wait while comments are loading...