MSEI to raise Rs 100 crore from rights issue

The Metropolitan Stock Exchange (earlier known as MCX-SX) expects to raise over Rs 100 crore from the rights issue launched yesterday.

The 1:1 rights issue will help the exchange increase the net worth of its clearing corporation too. MSEI's clearing corporation has net worth of around Rs 30 crore, which it has to increase to Rs 100 crore. 

According to sources, the Metropolitan Stock Exchange would issue 118,33,88,166 equity shares of face value of Re 1 each, aggregating up to Rs 118.34 crore. 

MSEI, which has a net worth of Rs 117 crore, is also losing market share and it needs funds to revive its share. 

However, MCX, one of its erstwhile promoter, will not be able to participate in the issue as the regulator has not allowed it to increase its take in MSEI. MCX has been unable to sell its warrants too and only has time till June 19 to do so.

If MCX warrants are cancelled, "book value of the MSEI will go up and help PSU banks like like SBI, Union Bank of India, Punjab National Bank, Bank of Baroda, Corporation Bank as they value their investments in unlisted companies' on book value," said an industry analyst. 

Current book value of MSEI is Rs 1.10, which could go up to Rs 1.60.

According to the latest shareholding pattern, the company's existing shareholders include Rakesh Jhunjhunwala, IFCI, IL&FS Financial Services and a host of banks like SBI, Axis Bank, Union Bank of India, Punjab National Bank, Bank of Baroda, Corporation Bank, among others.

MSEI, which has 1,100 companies listed with it under the permission to trade, yesterday said it has added 100 more companies to its trading platform.