| A STAFF REPORTER
Calcutta, Dec. 20: The Ahmedabad-based National Multi-Commodity Exchange (NMCE) plans to rope in strategic investors to fund the first phase of its expansion plans.
"We are going in for rapid expansion over the next two years in two phases and have appointed a Delhi-based consultant to prepare the roadmap," said Kailash Gupta, managing director, NMCE.
"Many banks and financial institutions have approached us for taking a stake in the company and we are keen to induct them. However, it would not be justified to offer them shares at par and certain premium has to be decided for the purpose," Gupta added.
He said the actual valuation would be revealed only after the consultant submits its report within the next fortnight. Following that, the company will appoint a merchant banker to carry out the process.
The current promoters of the company include Central Warehousing Corporation, Punjab National Bank, National Agricultural Co-operative Marketing Federation of India Ltd, Gujarat Agro Industries Corporation Ltd, Gujarat State Agricultural Marketing Board, National Institute of Agricultural Marketing and Neptune Overseas Ltd.
NMCE plans to tap the primary market for funding the second phase of its expansion. "The first phase will be over by March next year, while the second phase will start from July 2007," Gupta said.
"We are targeting at increasing our daily turnover to Rs 500 crore from the present Rs 80-100 crore," Gupta said. Towards that end, the exchange plans to expand its operations from 130 towns to 500 and increase the broker members to 200 from the present 93 in the next two years.
The exchange also plans to revitalise some of its commodities trading like jute bags, castor and guar seeds among others to increase the turnover, Gupta added.
The suspension of futures trading in raw jute contracts from December 15 has affected the daily turnover of NMCE, as jute constituted almost 10-15 per cent of its total turnover, he said.
The decision was taken following the jute commission fixing a reasonable price for different varieties of raw jute, whereby the price ceiling was fixed at Rs 1,468 per quintal.
"Since Forward Markets Commission is governed by the department of consumer affairs and jute commission by the ministry of textiles, the ministries have taken up the matter for an early resolution," mentioned Gupta.
Forward Markets Commission has decided that in case the maturity date of a running raw jute contract falls during the suspension period of the trade, the contracts should be deemed to be settled at the settlement price on December 15. |