IDFC Alternatives picks up minority stake in NCDEX for Rs 45.6 crore

KOLKATA: IDFC Alternatives’ private equity arm has announced that it has purchased a minority stake in National Commodity & Derivatives Exchange Limited (“NCDEX”)for Rs 45.6 crores, from Jaypee Capital Services Limited.

NCDEX is the leading agri-commodity derivatives exchange in India with agricultural commodity market share of more than 70% based on Average Daily Traded Value (ADTV) and more than 80% based on open interest. It has established an excellent physical infrastructure for handling delivery and trading of agri commodities. It has more than 700 accredited warehouses across India with capacity to handle more than 2.6 mn tonnes.

Welcoming IDFC Alternatives, Samir Shah, CEO of NCDEX, said: “We are pleased to have IDFC Alternatives as our shareholder and I’m sure they will add strategic value through their considerable experience and insight into Indian financial markets. NCDEX enjoys the distinction of being the only exchange in the country promoted by national level institutions which bring with them institution-building experience, trust, nation-wide reach, technology and risk management skills.”

Commenting on the occasion, Girish Nadkarni, Partner at IDFC Alternatives, said: “NCDEX helps disintermediation in the agri value chain, supports better price discovery and higher realization for farmers. NCDEX’s impeccable reputation, governance practices and well experienced team of professionals will take it to a new height of excellence”