Business Standard

NYSE Euronext may exit MCX

Will give over 100% profit in less than 3 years on its investment in MCX

BS Reporter  |  Mumbai 

(NYX) which acquired 4.79% stake in the Multi Commodity Exchange (MCX) in June 2008, may India’s largest commodity exchange. The exit by the world’s leading and most diverse financial market group will give over 100% profit in less than three years on its investment in MCX.

Since the investment was made prior to the exchange’s IPO, the deal if takes place will only be announced after completion of one year of the IPO which may happen in around second week of March.

NYSE Euronext had acquired 39.07 lakh shares from the promoter group at Rs 559 a share aggregating Rs 218crore at an enterprise value of above $1.1 billion. The share acquisition was announced completed on July 2, 2008.

The spokesperson neither confirmed nor denied the deal. “No comment,” was his response when quizzed about the deal.
“NYSE Euronext must have exited from the exchange due to profit,” said an analyst.

MCX entered the capital market in February last year with a price band of Rs 860 - 1,032 per share for the IPO. But, the final price was fixed at the top end at Rs 1,032 given the strong demand witnessed for the offer. The anchor investors were also allocated shares at the same price. The share was listed with a premium of 34% on strong demand from investors.

Since, the promoter group of the exchange enjoys an anchor investor’s stake of 26% in MCX, NYSE Euronext had to look for an investors who can buy its stake. According to informed sources, a US – based multinational company has evinced interest to buy NYSE Euronext’s stake in MCX.

The buyer’s identification, however, could not be ascertained.

Sources believe, the deal has been finalized and awaits approval from the commodity derivatives market regulator the Forward Commission (FMC).

Apart from that, FID Funds (Mauritius) Ltd, Myrrill Lynch Holdings are two other foreign institutional investors (FIIs) in MCX with equity holding of 5% and 4.79% respectively.

MCX’s share closed at Rs 1329.40 on the BSE on Monday, a marginal decline from Rs 1,351 on Friday.

RECOMMENDED FOR YOU

NYSE Euronext may exit MCX

Will give over 100% profit in less than 3 years on its investment in MCX

NYSE Euronext (NYX) which acquired 4.79% stake in the Multi Commodity Exchange (MCX) in June 2008, may exit India’s largest commodity exchange. The exit by the world’s leading and most diverse financial market group will give over 100% profit in less than three years on its investment in MCX. (NYX) which acquired 4.79% stake in the Multi Commodity Exchange (MCX) in June 2008, may India’s largest commodity exchange. The exit by the world’s leading and most diverse financial market group will give over 100% profit in less than three years on its investment in MCX.

Since the investment was made prior to the exchange’s IPO, the deal if takes place will only be announced after completion of one year of the IPO which may happen in around second week of March.

NYSE Euronext had acquired 39.07 lakh shares from the promoter group at Rs 559 a share aggregating Rs 218crore at an enterprise value of above $1.1 billion. The share acquisition was announced completed on July 2, 2008.

The spokesperson neither confirmed nor denied the deal. “No comment,” was his response when quizzed about the deal.
“NYSE Euronext must have exited from the exchange due to profit,” said an analyst.

MCX entered the capital market in February last year with a price band of Rs 860 - 1,032 per share for the IPO. But, the final price was fixed at the top end at Rs 1,032 given the strong demand witnessed for the offer. The anchor investors were also allocated shares at the same price. The share was listed with a premium of 34% on strong demand from investors.

Since, the promoter group of the exchange enjoys an anchor investor’s stake of 26% in MCX, NYSE Euronext had to look for an investors who can buy its stake. According to informed sources, a US – based multinational company has evinced interest to buy NYSE Euronext’s stake in MCX.

The buyer’s identification, however, could not be ascertained.

Sources believe, the deal has been finalized and awaits approval from the commodity derivatives market regulator the Forward Commission (FMC).

Apart from that, FID Funds (Mauritius) Ltd, Myrrill Lynch Holdings are two other foreign institutional investors (FIIs) in MCX with equity holding of 5% and 4.79% respectively.

MCX’s share closed at Rs 1329.40 on the BSE on Monday, a marginal decline from Rs 1,351 on Friday.
image

LIVE MARKET

BSE

  ( %)

NSE

  ( %)

Widgets Magazine

More News

STOCK WATCH

Company Price() Chg(%)
Indbull.RealEst. 67.55 6.46
Bata India 586.05 5.75
Suzlon Energy 14.99 5.27
Castex Tech 7.19 4.96
GMR Infra. 12.61 4.91
> More on BSE Gainers
Company Price() Chg(%)
Indbull.RealEst. 67.65 6.54
Suzlon Energy 14.95 5.28
Bombay Rayon 144.95 5.04
Bata India 584.20 5.02
GMR Infra. 12.60 5.00
> More on NSE Gainers
Company Price() Chg(%)
Titagarh Wagons 91.60 -7.33
Idea Cellular 118.30 -6.52
Jindal Steel 69.90 -6.49
HCL Technologies 750.45 -6.19
CEAT 1097.70 -5.88
> More on BSE Gainers
Company Price() Chg(%)
Jindal Steel 69.80 -6.56
CEAT 1098.60 -6.39
Idea Cellular 118.55 -6.28
HCL Technologies 750.30 -6.20
JMT Auto 53.25 -5.67
> More on NSE Gainers
Widgets Magazine
Widgets Magazine
Widgets Magazine

Derivatives

Index
Instrument Type
Expiry Date
Option Type
Strike Price

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard