MCX delays closure of rights issue on shareholders’ plea

The Multi-Commodity Exchange (MCX-SX), which was supposed to close its rights issue on Friday, has extended the deadline to 17 April on a request from shareholders.

The exchange, part of the embattled Financial Technologies India Ltd (FTIL), announced the rights issue on Monday. The issue aims to raise Rs545 crore.

''While shareholders see this as an opportunity to enhance their equity exposure in the exchange at a very attractive price, some banks have sought more time as they are in the process of getting clearances for investment from their boards and the RBI (Reserve Bank of India),'' the exchange said in a press release.

The exchange has therefore agreed to extend the period of rights issue by another month, it added. The rights issue of two new shares for every one share held by the existing equity shareholders was priced at Rs5 a share (including premium of Rs4 a share).

The exchange has started receiving funds on account of the rights issue and confirmation of participation from several leading shareholding banks, it said.

MCX-SX has also decided to allot the unsubscribed rights issue portion to new domestic and international investors on a preferential basis.

Some existing institutional investors have expressed concern over the future of the exchange after the Central Bureau of Investigation last week launched an investigation to ascertain the process involved in granting licence to the exchange despite opposition within SEBI.

Last week, MCX-SX appointed Thomas Mathew T, former chairman of the Life Insurance Corp of India (LIC), as chairman, after former home secretary G K Pillai resigned a day after the Central Bureau of Investigation crackdown on the commodities exchange (See: Former home secretary GK Pillai appointed chairman of MCX-SX).