Jaypee Capital sells 14.7% stake in NCDEX to 3 investors

It has sold 5% each to Build India Capital Advisors and IDFC Private Equity Fund III, while the rest to Oman India Joint Investment Fund

To comply with regulatory norms, city-based brokerage Jaypee Capital Services Ltd has sold off 14.7% stake in agri-commodity bourse NCDEX to three investors, including IDFC and Oman India Joint Investment Fund.

"After the regulator FMC's approval, Jaypee Capital Services has sold 14.7% stake in exchange to three investors," a senior NCDEX official said.

Of 14.7% stake, Jaypee Capital has sold 5% each to Build India Capital Advisors LLP and IDFC Private Equity Fund III, while the rest 4.7% stake to Oman India Joint Investment Fund, the official said.

The brokerage firm has sold part of its stake in NCDEX to comply with the FMC norm that do not allow shareholders having more than one% of the shares in a bourse to trade on it.

With this stake sale, Jaypee Capital cease to be an anchor investor in agri-commodity bourse NCDEX as its shares have come down to 7.66% from 22.36% earlier.

Also, the exchange will operate without an anchor investor as none of the existing shareholders have more than 15% stake in the bourse. Maximum stake of 12.5% is being held by top sugar refiner Shree Renuka Sugars.

According to sources, Jaypee Capital is planning to exit the bourse and focus more on its brokerage business. It is in talks with Oman India to sell off more shares.

Besides Jaypee and Renuka Sugars, other key shareholders of NCDEX include NSE, Nabard, LIC, IIFCO, PNB, Canara Bank and Intercontinental Exchange of the US.

NCDEX is the second largest agri-commodity bourse in the country. Its turnover stood at Rs 54,280 crore in the second fortnight of October.