Citigroup Inc. and Merrill Lynch & Co. bought 5% stakes each in the Multi Commodity Exchange of India Ltd (MCX) to tap the threefold growth in trade last year on the world’s third largest gold bourse. Mumbai-based MCX sold smaller stakes to Passport Capital and GLG Partners LP., Joseph Massey, its deputy managing director, said on Friday. The total sale is worth about Rs645 crore.
Overseas investors including Goldman Sachs Group Inc. and Fidelity International Ltd have invested in Indian markets as the fast pace of growth spurs demand for commodities in the world’s second largest sugar and rice producer.
The value of trading on MCX, which also trades commodities such as mentha oil, jute and turmeric, surged to Rs20.25 trillion in the year ended 2006 from Rs6.3 trillion in 2005.