Mumbai: 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 the news agency here on Thursday.
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 (IPO) at that time,” Bhatia said.
Ace Derivatives and Commodity Exchange launched its national level operations last year on 27 October 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.
“We are extremely happy with the performance of the exchange in the contracts currently being traded,” Bhatia said.
At present, it offers contracts in six agri-commodities namely-- castor, chana, mustard, soyabean, refined soya oil and sugar.
“The objective is to ensure value proposition to our members/clients through product differentiation, innovation in technology and better service to the market participants,” he added.
Bhatia further informed that the exchange plans to broaden its agri basket in the next two to three months by adding at least two to three more agri commodities.
The commex is expecting approval of its contracts for trading in guar seeds and guar gum from the market regulator- Forward Markets Commission (FMC) in May.
The Exchange is also looking at launching bullion and base metal futures contract in the near future, he said.
“We are encouraged by the increasing participation and open interest on the exchange platform. The exchange is being effectively used by all participants as an effective risk management and price discovery mechanism,” Bhatia said.