MCX-SX ropes in Nomura to find PE investors for stake sale
July 22, 2009
The country's third largest national level stock exchange, MCX Stock Exchange (MCX-SX) has appointed global investment banker Nomura Financial Advisory, for selling stakes in the company to the private equity (PE) firms, reports PTI.
MCX-SX, promoted by Financial Technologies (India) Ltd (FinTech), currently runs currency derivatives trading and is awaiting regulatory approvals to commence equity trading.
MCX-SX, which is understood to be in talks with several private equity firms for selling stakes in the company has appointed an investment banker for divestment process.
According to sources, MCX-SX has ropes in Nomura Financial Advisory & Securities (India) to identify private equity investors interested in buying stake in the company. However, company officials were unavailable for comments.
MCX-SX had initiated its divestment process in June, in line with the regulatory requirements of SEBI which do not allow promoters to control more than 15% in a bourse.
In the first round of divestment, MCX-SX sold about 6.5% stake to Union Bank of India (UBI) and Bank of India (BoI) through a primary offering at a price of Rs10 per share, aggregating Rs875 million.
The sale was a part of its 18% divestment plan with public and private sector banks in the first round of primary offerings.
Last week, FinTech sold 5% stake in MCX-SX to IFCI for about Rs2.5 billion as a part of the secondary sale process of divesting stake in MCX-SX. In June, along with the announcement of its annual earnings results, Financial Technologies had announced that it had sold part of its investment in an unlisted subsidiary to certain parties.