ICEX (Indian Commodity Exchange) Limited Unlisted Shares
Business of ICEX
(i) Indian Commodity Exchange Ltd (“ICEX”) is a recognized Commodity Exchange regulated by Securities and Exchange Board of India (“SEBI”), having demutualized corporate structure, online trading, clearing and settlement with best practices. The company operates in one reportable business segment namely “Commodity Exchange” and one reportable geographical segment, i.e., within India and accordingly “business of facilitating trading in commodities and incidental activities thereto” is considered as the only Primary Reportable business segment.
(ii) The Exchange after obtaining the approval to re-commence its trading operation from SEBI, started the trading operation from August 28, 2017, by launching the Diamond Derivative contract of 1 carat. ICEX is the first Exchange worldwide to launch the Diamond Derivative contract. The Exchange launched Steel Long contract on August 28, 2018, exactly after completion of one year of re-commencement of trading operation.
(iii) During the FY 2018-19, the Hon’ble National Company Law Tribunal (“NCLT”) sanctioned the amalgamation of National Multi-Commodity Exchange of India Limited (“NMCE”) with ICEX vide its common order dated August 27, 2018, and August 31, 2018, and the said merger was effective from September 7, 2018. The appointed date as per the scheme was April 01, 2017. Accordingly, NMCE amalgamated with ICEX during the year. The commodities traded on erstwhile NMCE were automatically traded on ICEX platform by operation of law. The exchange has now 16 different commodity derivatives contracts available for trading on its platform.
(iv) On July 11, 2019, Paddy Basmati derivative contract was also launched. The Exchange has plans to introduce innovative contracts from time to time and keep its position as an innovative Exchange.
(v) As per SEBI requirement and in compliance with the erstwhile SECC Regulations, 2012, the Exchange has outsourced its services with respect to a clearing, settlement, deliveries, risk management services to Metropolitan Clearing Corporation of India Limited (“MCCIL”) with effect from October 1, 2018, by signing the Clearing and Settlement agreement with MCCIL.
(vi) The Exchange with the support of its well-experienced management team has successfully set up its infrastructure and technology. ICEX has tied up with leading technology provider Millennium IT, subsidiary of London Stock Exchange Group whose systems are used by exchange businesses around the world. The Exchange is ideally positioned to leverage the huge potential of the commodities market and encourage the participation of farmers, traders and actual users to benefit from price discovery, risk management and supply chain management in the commodity markets.
SEBI Initiative to Boost Commodity Business
(i) Recently, SEBI has taken various steps to boost the commodity derivative market. In a major decision to strengthen commodity market, SEBI permitted mutual funds to participate in commodity futures along with PMS. It enabled mutual funds and portfolio managers to participate in the Agri and non-agri commodity derivatives segments (CDS). Earlier, Alternative Investment Funds (AIFs) were allowed to trade in commodities futures.
(ii) Notable policies initiatives have been allowing commodity options, allowing foreign entities to hedge their exposure on the commodity in Indian commodity exchanges and allowing the introduction of commodity indices trade
(iii) In the financial year 2018-19, the SEBI permitted two more exchanges to operate commodity derivative market. With this, there are currently five SEBI recognized electronic multi-commodity national exchanges including ICEX.
(iv) SEBI has permitted ICEX to launch Mutual Fund distribution, using the Exchange infrastructure and the Exchange will start this segment during the current financial year.
ICEX (Indian Commodity Exchange) Limited Unlisted Shares Details:
| Total Available Shares: | 100000 |
| Face Value: | ₹ 5 Per Equity Share |
| ISIN: | INE678L01012 |
| Lot Size: | 500 Shares |
| Current Unlisted Share Price: | ₹ 14 Per Equity Share |
Promoters And Management:
Company Business:
Shareholding Pattern:
| Sr. No | Name of the Shareholder | No.of Shares | % Of Shares |
| 1 | Reliance Exchangenext Limited | 871,00,000 | 16.33% |
| 2 | Central Warehousing Corporation | 589,63,956 | 11.05% |
| 3 | Deputy Director(PMLA) | 482,09,060 | 9.04% |
| 4 | Indiabulls House Finance Limited | 350,00,000 | 6.56% |
| 5 | MMTC Limited | 320,00,000 | 6% |
| 6 | Indian Potash Limited | 268,00,000 | 5.02% |
| 7 | Bajaj Holding and Investment Limited | 254,40,800 | 4.77% |
| 8 | Abhinay Trading Private Limited | 220,00,000 | 4.12% |
| 9 | Reliance Corporate Advisory Services Limited | 173,06,671 | 3.24% |
| 10 | Asian Star Company Limited | 167,50,000 | 3.14% |
| 11 | Akhil Kumar Gupta | 167,50,000 | 3.14% |
| 12 | Vijay Sharma | 167,50,000 | 3.14% |
Financials of ICEX (Indian Commodity Exchange) Limited Unlisted Shares:
| Particulars(in Crores) | 2018-19 | 2017-18 | 2016-17 |
| Revenue | 12.3 | 16.34 | 4.31 |
| Expense | 40.9 | 29.22 | 19.17 |
| PBT | -28.5 | -12.9 | -14.86 |
| Tax | 0 | 0.52 | 0 |
| PAT | -28.5 | -13.34 | -14.86 |
| Equity shares | 53.350748 | 33.5 | 33.5 |
| EPS | -0.53 | -0.7 | -0.58 |
Results Update
1. Annual FY 18-19
https://www.icexindia.com/docs/default-source/financials/185_sebi-quarterly-format—march-2019-web.pdf?sfvrsn=5af35fca_10
2. First Quarter of FY 19-20
https://www.icexindia.com/docs/default-source/financials/financial-results-for-the-quarter-ended-june-30-2019.pdf?sfvrsn=8ce2182c_2
In 2015-16
State-owned trading firm MMTC has sold 10 percent stake in commodity bourse Indian Commodity Exchange (ICEX) for Rs 20 crore.
Bharti Airtel group veteran Akhil Gupta and another Delhi-based investor, Vijay Sharma of BN Enterprises, have bought five percent each in ICEX in a personal capacity from MMTC.
As per our calculation, they have bought shares at Rs.10 each.
ICEX set to launch black pepper contract, eyes up to 50% of market
https://unlistedzone.com/icex-set-to-launch-black-pepper-contract-eyes-up-to-50-of-market-18-05-2019/
For two consecutive sessions, ICEX DIAMOND volume has breached all time high with value of Rs.365 crs traded on a single day. The Exchange also crossed landmark turnover of Rs.400 crores on a single day across all its contracts.
As per an internal discussion which is at initial stage, there will be only 2 full fledged exchanges. So MSEI and ICEX are likely to be merged with BSE. And MCX and NCDEX is likely to be merged with NSE. This consolidation is expected to be done in 1-2 years. Swap ratio will be in favour of smaller exchanges.
**********Flash News- ICEX witnessed 98.07% growth in physical delivery*******
January 10, 2019 : Indian Commodity Exchange (ICEX) on Tuesday stated that the beginning of New Year has witnessed the physical delivery growth of nearly 98% on a month on month basis on its platform and has brought cheers to the market. The value of delivery in both Steel Long and Diamond contracts expired on 4th January stood INR 5.2 crore. This is the highest value of delivery at ICEX since the launch of Diamond and Steel Long future contract in August 2017 and August 2018 respectively.
The settlement witnessed smooth delivery of 1230 MT steel Ingots/Billets valuing INR 4.06 crores and 31.34 carats of diamond valuing INR 1.06 crores.
Mr. Sanjit Prasad, MD & CEO of ICEX said, “ICEX has made a principled decision to launch compulsory delivery contracts which is a perfect platform and caters the need of all the participants in the echo system. Hence, ICEX trading platform provides a good opportunity for hedging the price risk for hedgers as contract expiry exhibits close convergence of the settlement and spot prices.”
In the previous month, i.e., December 2018, ICEX registered physical delivery of 590 MT Steel valuing INR 1.99 crore, while the physical delivery of 32.10 carats diamonds valuing INR 60 lakh.
1. NMCE merger with ICEX
2. On August 27, 2018, the NCLT, Ahmedabad approves the merger of NMCE with ICEX effective from 7th September 2018.
3. The merged entity will retain the name of ICEX. New board is to be reconstituted soon.
4. The merger creates India’s third largest commodity derivatives exchange offering a wide range of commodity contracts which includes Rubber, Castor Seed, Mustard Seed, and Jute apart from Diamond and Steel.
5. Merged entity draws on support from its prominent shareholders such as MMTC, Indian Potash, Krishak Bharti Cooperative (KRIBHCO), IDFC Bank, Indiabulls Housing Finance, Reliance Exchangenext, Bajaj Holdings, Central Warehousing Corporation, Punjab National Bank and Gujarat Agro Industries.
6. MD & CEO of ICEX, Mr. Sanjit Prasad said “Merger shall result into synergy with an increase in overall depth of product offerings, the addition of members & their clients and the well-diversified experience manpower.