NCDEX files papers for Rs 500-crore IPO, third listing by an exchange

National Commodity and Derivatives Exchange Limited (NCDEX) has filed its offer document with markets regulator Sebi for an initial public offering to raise about Rs 500 crore.

The IPO comprises a fresh issue aggregating up to Rs 100 crore and an offer for sale of up to 1,44,53,774 equities by shareholders, according to the draft red herring prospectus (DRHP).

The issue is expected to raise about Rs 500 crore, including fresh offering, merchant banking sources said. After BSE and MCX, this would be the third listing by an exchange.

Build India Capital Advisors, 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. Some of the key investors in NCDEX include National Stock Exchange of India, Life Insurance Corporation of India, National Bank for Agriculture and Rural Development.

Indian Farmers Fertiliser Cooperative, Oman India Joint Investment Fund, Punjab National Bank, Canara Bank, Build India Capital Advisors LLP, and Investcorp Private Equity Fund I also have stakes in the exchange.

NSE holds 15 per cent stake in the leading agricultural commodity exchange, while LIC and NABARD has 11.10 per cent each, IFFCO 10 per cent, OIJIF 10 per cent and Punjab National Bank 7.29 per cent among others, according the DRHP. The exchange proposes to utilise the net proceeds towards contribution to the core settlement guarantee fund, towards net worth requirements of National Commodity Clearing Limited and general corporate purposes, as per the document.

The book running lead managers to the offer are ICICI Securities and SBI Capital Markets.

The exchange offers services across the entire post-harvest agricultural commodities value chain by utilising a varied presence, which has enabled it to create a wide network of stakeholders and market participants. It also engages in research, training and building awareness in agricultural commodities market through NCDEX Institute of Commodity Markets and Research.

The shares are proposed to be listed on the BSE and NSE.

NCDEX gets Sebi's approval to launch 'whole moong' futures on July 8

India's largest agri centric commodity futures trading platform, the National Commodity & Derivatives Exchange (NCDEX) is planning to launch futures trading in 'whole raw moong' (not for direct consumption) on July 8.

Moong is one of the highest consuming and trading varieties in the Indian pulses basket.

The exchange has already received Sebi's approval for launch.

"Futures trading in moong is absolutely necessary for all stakeholders of pulses trade, which will provide them a very strong, well-regulated marketing channel. The launch of moong futures will not only help in providing advance price signals but will also help improving their price realisations. We are keen to offer robust and transparent price discovery tool to pulses industry value chain through moong futures contract," said Vijay Kumar, managing director and chief executive officer, NCDEX.

The exchange has identified Merta City, a prominent producing hub in Rajasthan, as basis delivery centre for moong futures while Nokha, Jodhpur and Sri Ganganagar will be additional delivery centres.

India being highest producer of Moong worldwide with more than 70 per cent share has a huge value chain of this protein-rich variety of pulses. Moong is also highly consumed pulse in the country parallel to Chana and as an alternative of other pulses. India produces 2– 2.5 million tonnes of moong worth Rs 11,500 crore annually.

A recent survey conducted by NCDEX finds that being a highly volatile pulses variety, trading in moong is exposed to high risk of price movement. Thus, futures contract in moong can serve as the best hedging tool for the entire value chain. Initially, futures contract of moong will be available for trade for delivery between August and December 2019.