Capital market regulator Securities and Exchange Board of India (Sebi) has cleared Rs 500-crore initial public offer (IPO) by Agricultural commodity bourse, National Commodity and Derivatives Exchange Ltd (NCDEX).
The IPO comprises fresh issue aggregating up to Rs 100 crore and an offer for sale of up to 1.44 crore shares. NCDEX filed the draft red herring prospectus (DRHP) with the capital market regulator in February.
After BSE and MCX, NCDEX would become the third listing by an exchange. The shares are proposed to be listed on the BSE and NSE.
The book running lead managers to the offer are ICICI Securities and SBI Capital Markets. ICICI Securities is the coordinating lead manager for the issue.
Earlier, the regulator had sought clarification on March 12 from the lead manager regarding its proposed IPO of NCDEX.
Some key investors in agricultural commodity exchange include National Stock Exchange of India, Life Insurance Corporation of India and National Bank for Agriculture and Rural Development.
While NSE holds 15% stake in NCDEX, Life Insurance Corporation of India (LIC) and NABARD have 11.10% each. IFFCO has 10%, Oman India Joint Investment Fund 10% and Punjab National Bank 7.29% stake, among others, according to the draft red herring prospectus (DRHP).
In an update on April 10, the regulator has given "observations" to NCDEX IPO on April 9. The regulator's observations are mandatory for any company to launch public issues like initial share sale, FPO as well as rights issue.
NCDEX has proposed to utilise the net proceeds from the issue towards contributing to the core settlement fund, net worth requirements of National Commodity Clearing Limited and general corporate purposes.
Shareholders selling their stake include Build India Capital Advisors LLP, Canara Bank, Indian Farmers Fertiliser Cooperative, Investcorp Private Equity Fund, Jaypee Capital Services, National Bank for Agriculture and Rural Development, Oman India Joint Investment Fund and Punjab National Bank.