Jaypee to exit NCDEX Shares being sold at around Rs 180 per share against his acquisition at Rs 59 three years ago New Delhi based Jaypee capital is set to exit the from the country’s number two commodity futures exchange the NCDEX. Gaurav Arora owned Jaypee capital is an anchor investors in the exchange with 22.38% stake. JayPee has already closed two deals selling 10% stake while the discussions on selling other 12.4% equity are in final stages with a few investors and likely to be finalized in a next few days. Shares are being sold at around Rs 180 per share against his acquisition at Rs 59 three years ago, said 2 per sons familiar with the deals. NCDEX has a paid up equity of Rs 50.67 crore. Jaypee has acquired stake in the National Commodity and Derivatives Exchange (NCDEX) three years ago at concessional price with a rider that the incumbent shall have to help exchange increase turnover in stages in three years and if that doesn’t happen as planned that at the end of three years he will have to make good the discount it had received. Currently NCDEX’s average daily volume is Rs 3,500 crore. Prior to Jaypee’s entry on the exchange, the NCDEX had done a right issue at the price of Rs.110 a share. As the three years are coming to an end, Jaypee is selling stake but with a profit. However, even after repaying discount, he will make a profit as the deals have happened at Rs.180 per share valuing the exchange over Rs.900 crore. However, Jaypee being an anchor investor, and he is exiting, the exchange according to a source will function as an institutions owned exchange without an anchor investors. He said that, “the exchange has matured now to grow of its own without an anchor and will remain professionally managed exchange.” NCDEX decline to comment on the deals while Gaurav Arora of Jaypee capital services also didn’t comment. IDFC PE who is picking up comment also said that they have no comment to offer while Oman International who has finally succeeded in entering India’s commodity futures space by buying 5% from Gaurav Arora could not be reached. Oman International was in negotiation with United Commodity Exchange to pick up 5% which didn’t materialized. According to information both the deals that is IDFC and Oman have been sent to the regulator the Forward Markets Commission (FMC) for approval. After exit of Jaypee, Shree Renuka Sugars will be the single largest shareholder on the NCDEX with 12.5% stake. According to the FMC norms shareholders of the exchange cannot trade on the same exchange. Renuka being one of the largest sugar producer cannot even hedge its positions on the NCDEX despite the exchange having predominantly agri trading and now making efforts to diversify in to non agri commodities. However, FMC is exploring allowing shareholders to trade on the same exchange with some safety net on surveillance aspect. The regulator had recently sought comments from exchanges whether shareholders should be allowed to trade on the same exchange or not.
Posted on: Mon, 23 Sep 2013 13:54:46 +0000
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