BackIFFCO acquires 1.12% stake in NCDEX for about Rs10 crore
IFFCO has 10% stake in NCDEX now
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New Delhi: Cooperative major Indian Farmers Fertiliser Cooperative Ltd (IFFCO) has increased its stake in commodity exchange National Commodity & Derivatives Exchange Ltd (NCDEX) by buying a 1.12% stake from Shree Renuka Sugars Ltd for about ₹ 10 crore.
IFFCO’s stake in NCDEX has now reached 10%.
Last week, leading sugar firm Renuka Sugars sold a 7.5% stake in NCDEX to investors, including the National Stock Exchange of India Ltd (NSE) and IFFCO, for ₹ 66.54 crore.
“We have bought 1.12% stake in NCDEX at ₹ 175 per share," a senior IFFCO official said. Of the stake sold by the sugar major, 5% was acquired by the NSE, an original promoter of NCDEX.
Renuka Sugars sold a 1.12% stake to IFFCO and another 1.38% to Star Agriwarehousing and Collateral Management Ltd. Following the transaction, Renuka Sugars holds 5% in NCDEX, the country’s second-largest commodity exchange.
NSE is now the largest shareholder in NCDEX with a 15% stake, followed by Life Insurance Corp. of India and National Bank for Agriculture and Rural Development, with 11.1% each.
IFFCO and Oman India Joint Investment Fund have a 10% stake each in NCDEX. IFFCO is the largest soil nutrient producer in the country, with an annual output of 4.4 million tonnes of urea and 4.3 million tonnes of complex fertilisers.
Besides, IFFCO owns shares in Indian Potash Ltd, Industries Chimiques du Senegal, Oman India Fertiliser Co. in Oman and Jordan India Fertiliser Co.
The company is also present in the insurance sector through a joint venture firm, IFFCO-Tokio General Insurance Ltd.
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