Reliance Money to pick up additional 16% stake in NMCE

Reliance Money to pick up additional 16% stake in NMCE
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First Published: Wed, Oct 08 2008. 04 54 PM IST
Updated: Wed, Oct 08 2008. 04 54 PM IST
By PTI
Mumbai: Reliance Money has sought permission to acquire an additional 16% in the National Commodity Exchange of India (NMCE), a top company official said.
“We have acquired a 10% stake and we are now seeking approval from the Forward Markets Commission (FMC) and Ministry of Consumer Affairs for an additional 16% stake in NMCE within the next three months,” Reliance Money’s director and chief executive, Sudip Bandyopadhyay, told reporters on the sidelines of a conference here today.
Reliance Money has proposed to invest Rs26 crore through acquisition of a total of upto 26% in NMCE in two phases.The company has also obtained approval from the Ministry of Consumer Affairs to acquire a 10% stake in the National Multi-Commodity Exchange of India (NMCE) Board.
“The potential in the commodity space is huge. The money will be used in funding the exchange’s expansion plans,” Bandyopadhyay said.
NMCE is planning to raise Rs100 crore through a shareholding restructuring process. “We will issue of fresh shares to existing stake holders including Reliance Money,” NMCE’s Managing Director, Kailash Gupta, said.
“There will be no question of bringing more partners but we will issue additional shares to existing shareholders only,” Gupta said.
Presently, amongst the major shareholders, Central Warehousing Corporation (CWC) holds 26%, Punjab National Bank 11%, Nafed 5%, Government of Gujarat 11% and Neptune Overseas Ltd, belonging to promoter Gupta, around 24%.The remaining is held by small stakeholders.
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First Published: Wed, Oct 08 2008. 04 54 PM IST