Bajaj Holdings picks up 12.82% stake in National Multi Commodity Exchange with an investment of Rs 250 Million

Ahmedabad, 13th October 2010: National Commodity Exchange of India (NMCE), a pioneer in agro- commodities has raised INR 250 million from Bajaj Holdings and Investment Limited (Bajaj Holding). This investment will help NMCE to meet its regulatory capital requirement and strengthen its balance sheet for investment in exchange infrastructure.

About the transaction

National Commodity Exchange of India (NMCE) and Bajaj Holdings and Investment Limited (Bajaj Holding) today announced the signing of a definitive agreement under which Bajaj Holding has agreed to invest INR 250 million in NMCE. The investment would partially meet the regulatory capital requirement. The same would be utilized towards strengthening of the exchange IT infrastructure, business development and human resources.

Equirus Capital acted as the exclusive financial advisor to NMCE for the transaction

“NMCE is the pioneer and most institutionalized electronic commodity exchange in India. We are pleased to partner with a reputed business house like Bajaj Group in our next stage of growth. We believe this association would further diversify our investor base and facilitate in strengthening the exchange infrastructure and ecosystem”, said Kailash Gupta, Vice Chairman, NMCE

“We are excited to invest into NMCE. They lead in select agri commodities. We like their grass root connect and the commitments to extend reach to all stakeholders - producers, consumers, industry, intermediaries etc. We are hopeful that the impending regulatory changes & the robust growth envisaged in the physical economy would boost the commodity exchange volumes in India”, said Sanjiv Bajaj, Director, Bajaj Holdings.

“Commodity exchange business in India is in nascent stages of evolution. The regulatory framework is evolving towards diversification of products and participants which are expected to drive exponential growth. Competition in exchanges are expected to harden with new exchange coming in but focused exchanges like NMCE are expected to outperform”, said Pritish Kandoi, Vice President, Equirus capital

About National Multi Commodity Exchange of India Ltd.

Incorporated in 2002, NMCE is the first nationwide commodity exchange of India promoted by Central Warehousing Corporation and Neptune Overseas limited. Other shareholders in NMCE include National Agricultural Cooperative Marketing Federation of India, Gujarat Agro-Industries Corporation Limited, Punjab National Bank and Reliance Money. NMCE has active contracts in multiple commodities including cash crops, food grains, plantations, spices, oil seeds, metals and bullion.

About Bajaj Holdings and Investment Limited

Bajaj Holdings and Investment Limited is the parent company of Bajaj Auto Limited (BAL) and Bajaj Finserv Limited (BFL) and is a part of Bajaj Group.  

About Equirus Capital Private Limited

Equirus Capital is an Investment Bank offering advisory services in the areas of Mergers and Acquisition, Private Equity, Merchant Banking and Structured financing. Equirus has strong domain credentials across Engineering / Manufacturing, Education, Technology, Media and Telecom, Financial Services, Retail, Consumer / Business services, Infrastructure, Real Estate and Life Sciences verticals.

 

Media Contact:

Chandni Rangwani                                                                             Shekhar Singh

Corporate Communications                                                             Tarmac Affairs

National Multi Commodity Exchange of India Ltd.                  Contact: 9825060991

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