IDFC Alternatives’ private equity arm has acquired a minority stake in agri commodity derivatives exchange National Commodity & Derivatives Exchange Ltd (NCDEX), India’s largest agri-commodity exchange for Rs 45.6 crore. The stake was acquired from Jaypee Capital Services Ltd.
NCDEX has an agricultural commodity market share of more than 70 per cent based on average daily traded value and more than 80 per cent based on open interest. It has more than 700 accredited warehouses across India with the capacity to handle more than 2.6 mt.
“We are pleased to have IDFC Alternatives as our shareholder and I’m sure they will add strategic value through their considerable experience and insight into the Indian financial markets,” NCDEX CEO Samir Shah said.
Satish Mandhana, Managing Partner and CIO at IDFC Alternatives, said: “In continuation of our focus on the agri and rural sector, this investment in the financial-cum-physical infrastructure of our rural economy, brings a good portfolio balance. As exchange traded agri-commodities in India are well below international benchmarks, we see significant growth opportunity for NCDEX”.