MCX-SX mops up Rs 60 cr via rights issue; short of target

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MCX Stock Exchange (MCX-SX) today said it has raised Rs 60 crore through rights issue, less than one-third of the targetted amount.

The exchange was expecting to mop up Rs 200 crore through the rights issue.

The exchange had announced its rights issue in the ratio of 2:1 equity shares held by the existing shareholders.

"MCX-SX has announced the closure of its rights issue... The exchange received funds around Rs 60 crore through rights issue," the bourse said in a statement.

The proceeds of the rights issue would be utilised towards development of business and to attract new participants on the exchange platform.

MCX said that the names of the institutions that subscribed to the issue would be announced once the allotment process is completed.

Earlier, the exchange had extended the subscription period for its rights issue till April 30 citing a request from banks.

The exchange would also plan a preferential allotment after six months as it has received expression of interest from new domestic and international investors, the statement said, adding that an investment banker would be appointed soon.

The exchange's networth would also increase due to the recent directive by market regulator Sebi to Financial Technologies India Ltd (FTIL), its erstwhile promoter, for divestment of convertible warrants.

Conversion of these warrants into equity would result in increase in share capital by Rs 56 crore.

The networth post rights issue is well beyond the regulatory requirement of Rs 100 crore and the exchange has been successful in rationalising costs in a significant manner thereby improving the balance sheet, the statement added.

The newly appointed MCX-SX management has taken a slew of measures including negotiating technology agreements with vendors and temporary suspension of the liquidity enhancement scheme.

"The improved realisations from the currency derivatives segment, post the relaxation in margins and extended trading hours is further expected to speed up the turnaround of the exchange," MCX-SX said.

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