MCX-SX extends Rs 545-crore rights issue till April 17

Mar 22 2014, 05:28 IST
Comments 0
SummaryThe MCX Stock Exchange (MCX-SX) has extended the subscription time for its nearly R545-crore rights issue till April 17

The MCX Stock Exchange (MCX-SX) has extended the subscription time for its nearly R545-crore rights issue till April 17 as some banks are still awaiting regulatory and board approvals to participate in the offer.

At present, about 80% stake in the exchange is held by government-owned banks and financial institutions. The rights issue has been extended at a time when the grant of licence to MCX-SX is under the CBI scanner. On February 17, the exchange announced the rights issue whereby existing stakeholders would get two shares for one scrip held in the company. The issue size is R544.69 crore, with each scrip priced at R5.

While shareholders see this as an opportunity to enhance their equity exposure in the exchange industry at a very attractive price, some banks have indicated the proposal is in advanced stages of clearances from their board and the RBI. “Hence, the exchange has agreed to extend the period of rights issue by another month. The issue will now close on April 17, 2014,” MCX-SX said in a statement.

According to the bourse, it “has started receiving funds on account of the rights issue and confirmation of participation from several leading shareholding banks (has come in).”

“An exercise of a preferential allotment after the rights issue may be considered given the interest from new domestic and international investors,” it added.

Financial Technologies (India), the flagship firm of the Jignesh Shah-led group, and MCX were among the original promoters of MCX-SX, the country's youngest exchange.

Following a restructuring ordered by Sebi in the wake of the crisis at the National Spot Exchange (NSEL), FTIL and MCX were shifted to the public shareholder category.

Earlier this week, Sebi ruled that FTIL is not "fit and proper" to own stakes in any stock exchange and directed it to divest existing holdings in MCX-SX and four other entities. The exchange, last week, elected former LIC chief Thomas Mathew T as its chairman, and professor at Indira Gandhi Institute of Development Research (IGIDR) Ashima Goyal as vice-chairperson.

Ads by Google

More from Money & Funds

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