Blackstone to raise stake in MCX to 5%

Blackstone currently holds 1.99% stake

 

Blackstone plans to acquire three per cent stake in the Multi Commodity Exchange (MCX), the country’s largest in the segment. This will increase the private equity major’s stake in the bourse to almost five per cent. Blackstone currently has 1.99 per cent stake in MCX.

It plans to do so through secondary market purchases. The Forward Markets Commission (FMC) has cleared Blackstone’s proposal. A foreign institutional investor holding over two per cent requires approval from FMC.

According to a source, Blackstone, through its Mauritius subsidiary, Blackstone GPV Capital Partners, will be raising its stake through acquisition from the open market. FIIs, including Merrill Lynch and NYSE Euronext, are likely to be the sellers. NYSE Euronext had 4.73 per cent and Merrill Lynch 2.29 per cent stake as on September. Early this year, Merrill Lynch sold nearly two per cent in the MCX for about Rs 104 crore.

“Unfortunately, we will not be able to comment on your query,” said a Blackstone spokesperson, when asked to confirm the development.

Shares of MCX ended higher, amid high volatility, on Wednesday. The share closed with a gain of 8.3 per cent to Rs 421.35 apiece from the previous close of Rs 389.10. Financial Technologies, the parent firm, ended nearly flat on Wednesday to close at Rs 166.80, from the previous of Rs 168.30.