State-owned MMTC today said the company will sell its 10 per cent stake in the commodity bourse ICEX equally among two bidders, who participated in the global tender.
MMTC has been looking for investors to sell its 26 per cent stake in the commodity bourse Indian Commodity Exchange (ICEX), which wound up its operations towards the end of 2013.
According to sources, MMTC had invited bids for purchase of a minimum 20 lakh shares (equivalent to 1 per cent shareholding in the bourse) at a minimum reserve price of Rs 10 a piece.
Currently, MMTC holds 5.20 crore equity shares in ICEX at a face value of Rs 5 each.
"...The Board of Directors of the Company in its meeting held on September 11, 2015 has approved the proposal for sale of 10 per cent of ICEX equity i.E. 5 per cent each, to the two bidders who participated in the global tender against the present holding of 26 per cent in ICEX by MMTC @ Rs. 10/- per share..." the company said in a regulatory filing.
However, the sale is subject to the approval by the government and Forward Markets Commission (FMC), it added.
FMC had also issued a show-cause notice to ICEX to scrap its registration because no business has been generated on the exchange since December 2013.
MMTC is planning to divest stake in ICEX as it is not interested to infuse more funds to increase the net worth of exchange to meet the regulatory norms.
ICEX does not have sufficient net worth and requires infusion of funds from existing shareholders as well as investment from fresh shareholders.
During the end of 2013, the ICEX had decided to wind up operations and trading was accordingly suspended on December 24, 2013 after the business volumes got affected due to several factors including imposition of commodity transaction tax and the Rs 5,500 crore payment scam at NSEL.
Other stakeholders in ICEX include: Reliance Exchange Next with 26 per cent, IBFSL and Abhinay Trading Corporation's 14 per cent each, Indian Potash Ltd with 10 per cent, while KRIBHCO and IDFC hold five per cent each in the exchange.
