Heard on the street: Commex Tech climbs 24 pc after govt nod

Shares of Commex Technology, a software solutions provider earlier known as IT People, have jumped by 24 per cent on BSE since Friday. Brokers said the gains came after the company-promoted new commodity exchange, UCX, received government recognition to go live. Commex owns 40% in UCX, along with Nabard and REC, which hold 16 per cent each.

The share closed up 1.9 per cent at Rs 30 on Wednesday. Despite a saturated market, with existing players MCX and NCDEX accounting for around 90 per cent volumes, commexes have attracted a fair bit of investor interest.

In 2010, Indiabulls, sold 26 per cent of its 40 per cent holding in ICEX to Reliance Capital, earning two times its original investment within just a year of starting the commex, not to speak of MCX which became the first bourse to list earlier this year.

Commex is founded by Ketan Sheth who owns 37.79 per cent in the company.