MCX-SX rights issue closes with Rs 60 cr subscription
May 02 2014 , Mumbai
The exchange received funds around Rs 60 crore. The names of the institutions that subscribed to the issue will be announced once the allotment process is completed, MCX-SX said in a statement. The proceeds of rights issue will be utilised towards development of business and to attract new participants on the exchange platform.
The exchange would plan for a preferential allotment after six months as it has received expression of interest from new domestic and international investors. An Investment banker would be appointed for this process. The exchange’s net-worth would also increase due to the recent directive by the Securities and Exchange Board of India (Sebi) to Financial Technologies India for divestment of convertible warrants. Conversion of these warrants into equity will result in increase in share capital by Rs 56 crore.
The net worth 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 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.