Ripples Advisory, MMTC is rethinking decision to sell its residual 9.5% equity in ICEX
Initially, MMTC had 26 per cent of the equity in the exchange but its stake had gradually shrunk
MMTC, the state-controlled trading company, is rethinking a previous decision to sell its residual 9.5 per cent equity in Indian Commodity Exchange Ltd (ICEX).
“We see promise in ICEX’s diamond futures business. This is the country’s only exchange in such transactions. MMTC will rope in a merchant banker to advise the company on retaining our equity in the exchange,” said an MMTC official.
Initially, MMTC had 26 per cent of the equity in the exchange but its stake had gradually shrunk. Last year, its board of directors had decided to sell off its 9.5 per cent stake, marking its exit from the bourse. It had thought that being a minor equity participant did not make much sense, as it would be deprived of a say in decisions. The exchange had also not taken off as planned; trading was suspended for three years.
MMTC had invited an Expression of Interest (EoI) from interested bidders to acquire its stake. The company aimed to divest 32 million equity shares of Rs 5 face value each, through competitive bidding. However, this drew tepid interest and MMTC decided on a new EoI. Now comes the latest thinking.
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