Multi Commodity Exchange (MCX) added to the number of its designated cold storages to boost potato futures trading, reports Business Standard.
The MCX has opened new storages (delivery centres) from 6 in 2007 to 12 this year in West Bengal. The new delivery centres would operate in Bankura, Bardhhaman and Medinipore, apart from the existing ones in Hooghly, said sources at MCX.
None of the cold storages will be owned by the exchange, but only run by MCX through franchisee arrangements with the existing cold storage owners. The holding capacity of each of the storages is close to 3-5 lakh potato bags, each of 50 kg.
A majority of participants in the exchange are traders and cold storage owners. Framers largely remain out of the purview of commodity exchanges, due to their limited reach and the traditional supply chain for marketing potato. Therefore, MCX has conducted around 27 farmers programs in the 4 districts where the delivery centres are located.
Friday, March 7, 2008
CTT may force a delay in IPO of MCX
NEW DELHI: The country's leading commodity exchange MCX may consider delaying its Initial Public Offer because of introduction of Commodities Transaction Tax (CTT), which is likely to affect the turnover of the bourse.
"It will require a deliberation in the company," a source said commenting on whether MCX would shelve or delay the plan to launch IPO due to negative sentiments created by the introduction of CTT in commodity market.
The introduction of CTT would affect the business of the commodity market, source added. The turnover of MCX, which has a stronghold in bullion, metal and energy commodities, was Rs 27,29,822 crore during April-December 2007.
MCX had last month filed a draft prospectus with the market regulator SEBI for its IPO, through which the company plans to raise about Rs 500 crore from sale of one crore equity shares.
NYSE Euronext, which owns the New York Stock Exchange and four European bourses, had picked up five per cent stake in MCX for USD 55 million last month. The deal had valued MCX at about $1.1 billion (over Rs 4,300 crore).
According to DRHP, the public issue of one crore equity shares of Rs five each at a premium to be determined through a 100 per cent book-building process would comprise fresh issue of 60 lakh shares. Another 40 lakh shares will be sold by Financial Technologies (India) Ltd, the main promoter of MCX, and Corporation Bank.
The company had filed a Draft Red Herring Prospectus for its IPO way back in 2006, but the plans were later shelved.
Proceeds of the issue would be used for the exchange's technology infrastructure and strategic investment and acquisitions, besides other usages.
"It will require a deliberation in the company," a source said commenting on whether MCX would shelve or delay the plan to launch IPO due to negative sentiments created by the introduction of CTT in commodity market.
The introduction of CTT would affect the business of the commodity market, source added. The turnover of MCX, which has a stronghold in bullion, metal and energy commodities, was Rs 27,29,822 crore during April-December 2007.
MCX had last month filed a draft prospectus with the market regulator SEBI for its IPO, through which the company plans to raise about Rs 500 crore from sale of one crore equity shares.
NYSE Euronext, which owns the New York Stock Exchange and four European bourses, had picked up five per cent stake in MCX for USD 55 million last month. The deal had valued MCX at about $1.1 billion (over Rs 4,300 crore).
According to DRHP, the public issue of one crore equity shares of Rs five each at a premium to be determined through a 100 per cent book-building process would comprise fresh issue of 60 lakh shares. Another 40 lakh shares will be sold by Financial Technologies (India) Ltd, the main promoter of MCX, and Corporation Bank.
The company had filed a Draft Red Herring Prospectus for its IPO way back in 2006, but the plans were later shelved.
Proceeds of the issue would be used for the exchange's technology infrastructure and strategic investment and acquisitions, besides other usages.
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