The National Multi-Commodity Exchange of India is in talks with private equity firms to raises 300-350 million rupees to comply with minimum capital rules, Reuters reported Tuesday. The exchange is India’s fourth largest, and currently has equity capital and reserves of 650-700 million rupees. Names of potential private equity backers were not released.
(Reuters) – National Multi-Commodity Exchange of India (NMCE), the country’s fourth largest exchange, is in talks with five private equity investors and banks to raise 300-350 million rupees to comply with minimum capital rules, its chief said on Tuesday.
“We have signed ND (non-disclosure) agreements with possible investors,” said Anil Mishra, chief executive officer of NMCE.
NMCE, which currently has an equity capital and reserves of 650-700 million rupees, had indicated a rights issue to raise capital. “Once we do this, we may not require a rights issue,” said Mishra.
“The parties who are interested are very reputed ones … We are very happy with the development,” said Mishra of NMCE, whose largest shareholder is Central Warehousing Corp. with a stake of about 30 percent.
Forward Markets Commission, the commodity futures regulator, has asked commodity exchanges with 5 years of operations to have a minimum equity capital of 1 billion rupees by Mar. 31. ($1=51.09 Indian rupees) (Reporting by Siddesh Mayenkar; editing by Krittivas Mukherjee)