NCDEX’s ₹500-cr IPO to open soon

The ₹500-crore IPO of National Commodity and Derivatives Exchange (NCDEX) is likely to open in the next few weeks and the plan is to get the exchange listed before the end of this fiscal, sources close to the development told BusinessLine. The agri-trading bourse has received final observations from SEBI on its IPO prospectus, the sources said.

Meanwhile, the exchange is all set to launch its IPO, the extension of term to Vijay Kumar Venkataraman, MD and CEO of NCDEX, hung in the balance. Kumar was appointed to the post in January 2018 for a period of three years that is now coming to an end. SEBI has so far not approved the extension request for Kumar from the NCDEX board but that is more on the technical grounds, sources said. A senior regulatory official said that Kumar’s reappointment request is likely to be approved by SEBI once the board makes a fresh submission. In his earlier role Kumar has also worked with the National Bulk Handling Corporation, an integrated commodity and collateral management services of agri-commodities, promoted by private equity fund True North. SEBI has not considered three other candidates who had applied for the post, the sources said.

NCDEX will become the second commodity bourse exchange in India to be listed. Trading volumes on the exchange has taken a beating since 2018. On an average, more than ₹3,000 crore worth of commodities were traded on NCDEX three years ago, which has come down to less than ₹1,000 crore. NCDEX has proposed to utilise the net proceeds towards contribution to the core settlement guarantee fund, net worth requirements of National Commodity Clearing Ltd and general corporate purposes.

The NSE holds 15 per cent stake in NCDEX, followed by LIC and Nabard at 11.10 per cent each; FFCO and Oman India Joint Investment Fund 10 per cent each; and Punjab National Bank 7.29 per cent.

Build India Capital Advisors LLP, Canara Bank, Indian Farmers Fertiliser Cooperative, Investcorp Private Equity Fund I are among the selling shareholders. Jaypee Capital Services, National Bank for Agriculture and Rural Development, Oman India Joint Investment Fund and Punjab National Bank will also sell their stakes.