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MSEI to launch rights issue to raise Rs 97 cr from Monday

Press Trust of India  |  Mumbai 

Metropolitan Stock Exchange of (MSEI), earlier known as MCX-SX, will launch its rights issue to raise Rs 97 crore, for funding its business plans and strengthen its financial, from August 22.

Besides, the funds garnered from the issue, will help capitalise the subsidiary Metropolitan Clearing Corporation of (MCCIL) as well as improve the net worth of MSEI, which is currently little over Rs 100 crore.

The issue, which would close on September 10, is also expected to speed up the implementation of the exchange's business turnaround strategy and support new product launch.

"Out market share in currency derivative segment has increased from 3 per cent to 10 per cent in the last few months. We are taking right steps. We have short term objective of reaching 15 per cent growth in the segment by December, this year," MSEI managing director and CEO Udai Kumar told reporters here.

"We have two years plan to make this exchange profitable by March 2018...Annual loss of MSEI has come down from Rs 60 crore in 2014-15 to Rs 40 crore in 2015-16," he added.

Last year, the exchange had launched a rights issue to raise Rs 100 crore and was able to mobilise proceeds amounting to Rs 75 crore.

A new management had taken charge earlier this year and arrived at a turnaround strategy which was approved by the Board of MSEI.

According to the exchange, the strategy has seen success on certain fronts such as increase in market share of currency derivative segment and it had re-launched the interest rate futures (IRF) with robust open interest positions.

Besides, 200 new companies have listed on MSEI. These companies have shifted from Regional Stock Exchanges (RSE) to MSEI.

As per its annual report 2015-16, the company's existing shareholders include Rakesh Jhunjhunwala, IL&FS Financial Services and SBI.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, August 19 2016. 15:57 IST