Commex tech looks to sell up to 10% in UCX to SBI

MUMBAI: Commex Technologies, a software solutions provider and promoter of upcoming commodity bourse Universal Commodity Exchange (UCX), has approached the State Bank of India ( SBI) group to sell up to 5-10% stake in the bourse.

"Ketan Sheth, MD of Commex Technologies, has approached the SBI group with an offer to sell between 5% and 10% in the exchange to the bank, which is considering the proposal," said a person aware of the developments.

"If the deal goes through, shares will be issued at par, much like when UCX's promoter sold stake in the bourse to public sector companies such as IDBI Bank or Rural Electrification Corporation and cooperatives like Iffco," he said.

An SBI group official declined comment, while the spokesperson of UCX said, "A lot of corporates and public sector companies have evinced interest in picking up stake in the exchange, so much so that we have commitments well in excess of the stipulated 100 crore equity capital norm."

SBI currently holds 1.04% in commodity exchange MCX and 8.5% in the National Stock Exchange. Commex Technologies was given six months up to March 12 to comply with the equity structure norm for a new commodity exchange.

A senior government official told ET that UCX's promoter has sought an extension to complete formalities related to equity capital norms for a new bourse and Forward Markets Commission (FMC), the commodity futures market regulator, has written to its parent, the consumer affairs ministry, recommending Commex Technologies be given additional time.

On Friday, the Commex Technologies' scrip closed up 5.6% at 19 while the SBI share ended up 3.8% at 2,222.3. UCX's key shareholders include Commex Technologies, which owns 40%, Iffco (15%), IDBI Bank (10%) and REC (16%). Oman Investment Fund recently received the FIPB approval to pick up 5% in the bourse for 13.75 crore at a premium of 17.5 per share. Along with OIF, Commex has tied up 86% of the requisite 100 crore capital. Apart from SBI, the promoter is in talks with Nabard to sell 16% stake.

Metals and energy bourse MCX commands an over 80% market share in the commodity futures market, which posted a turnover of 159 lakh crore in the financial year through February 15. Agri bourse Ncdex holds around 10-12% and the rest is shared among Reliance ADA-anchored ICEX, Kotak Mahindra- promoted Ace and CWC-promoted plantations exchange NMCE.