MCX rallies over 5% as ace-investor Rakesh Jhunjhunwala picks up 2% stake

NEW DELHI: Multi Commodity Exchange ( MCX) rose over 5 per cent in trade on Wednesday, after billionaire investor Rakesh Jhunjhunwala bought a 1.96 per cent stake in India's largest and only listed commodity bourse Multi Commodity Exchange of India (MCX) from its promoter Financial Technologies (India) ( FTIL) in a block deal for Rs 66 crore.

The deal values the exchange at around Rs 3,370 crore. After Tuesday's transaction on the NSE - involving 10 lakh shares having been transferred to Jhunjhunwala at Rs 664 apiece - FTIL's stake in the bourse has declined to 24%, ET reported.

Jhunjhunwala, said market analysts, made a good buy by having added a company that was the leader in the commodity futures market comprising five national level and 15 regional bourses.

Some 13.03 lakh shares changed hands against the 2-week average of 4.06 lakh shares. MCX enjoys over 80 per cent market share among commodity futures exchanges, which posted a combined turnover of Rs 101.4 lakh crore in FY14.

Jhunjhunwala owns stakes in over 40 listed companies such as Crisil, Lupin, Titan Industries, Escorts, DB Realty, VIP Industries, Rallis India and Viceroy Hotels, added the ET report.