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Blackstone to up stake in India's MCX to 4.99%

  • Andrew Woodman
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Blackstone is to increase its stake in the Commodity Exchange of India (MCX) to as much as 4.99%. The proposed purchase comes after Blackstone picked up 2% in the commodity bourse for INR1.04 billion ($16.6 million) in March this year.

According to a filing with the Bombay Stock Exchange (BSE), Blackstone will acquire the extra stake through a secondary transaction via Blackstone GPV Capital partners (Mauritius) VI FII. At the current market price, Blackstone is expected to pay a little over INR600 million to raise its stake to 4.99%.

Should the transaction go ahead it will make Blackstone the largest non-promoter shareholder in MCX ahead of IFCI and Aginyx Enterprises, which each hold 4.79%. Other shareholders include Valiant Capital, Intel Capital, NYSE Euronext, Fidelity and GIC Private.

The move comes as the commodity markets regulator FMC has issued an order declaring that Financial Technologies ((FTIL) - the promoter and anchor share-holder holding 26% - was unfit for holding more than 2% stake in the business.

FMC also said has it holds FTIL and its directors responsible for the INR55 billion in fraud involving its unit National Spot Exchange (NSEL). Blackstone and CVCI are both shareholders of FTIL, each holding 7% and 4.3% respectively, as of September 30.

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