MCX-SX, the equity exchange jointly promoted by MCX and Financial Technologies India Ltd (FTIL) in which both together own nearly 9.97%, has decided to go in for capital raising through rights issue.
The board of MCX-SX on Friday gave its in-principle approval for a 1:1 rights issue to existing shareholders in compliance with SECC Regulations. The board also decided to have a meeting with institutional shareholder representatives on January 13 to obtain their approval, after which the formal steps for the rights issue will be initiated.
The equity exchange has 19 domestic financial institutional investors, including IFCI, Union Bank of India and Punjab National Bank, together holding 88.53% of the undiluted shares.
The promoter group still owns 71.84% stake if one considers the fully diluted shareholding including the warrants issued to them.
The board also noted that the Securities and Exchange Board of India had accorded its approval to the appointment of the new MD & CEO and that he was likely to join shortly.
Though its not official, United Stock Exchange’s chief Saurabh Sarkar is tipped to be the next MD & CEO of MCX-SX.
Board approves special audit
The board of MCX Stock Exchange has appointed a “firm of chartered accountants to conduct a comprehensive audit/review of the exchange since inception”. According to a release, it was decided to have a meeting with institutional shareholder representatives on January 13 to obtain “their concurrence on the proposal.