Kotak Group may dilute 11% in Ace Commodity Exchange

Kotak Group, the promoter of Ace Derivatives and Commodity Exchange, is likely to dilute 11% in the commex by August this year, a top company official said.

"Kotak Bank which holds a 51% stake in Ace Derivatives and Commodity Exchange, will dilute 11% stake by August. We are looking at strategic investors who will add value to our growth plans," Ace Derivatives Chief Executive Officer Dilip Bhatia told PTI here today.

The exchange is India's fifth pan-India commex and is anchored by the Kotak Group.

Apart from Kotak group's holding of 51%, HAFED has a 15% stake in the commex, while three public sector banks-- Union Bank of India, Bank of Baroda and Corporation Bank-- hold a 5% stake each. The remaining 19% stake is with erstwhile stakeholders.

Kotak Group will have to bring down its stake to 26% by 2014-15. "The exchange may plan an initial public offer at that time," Bhatia said.

Ace Derivatives and Commodity Exchange launched its national level operations last year on October 27 and completed six months of its operations last week.

The exchange has also witnessed a steady increase in both the daily traded volumes as well as open interest across all the traded commodities.