NSEL IPO : Planning to tap the capital market

by khalid on 29/06/2010 · 0 comments

National Spot Exchange Limited (NSEL) is a commodity exchange in India which conducts spot trading in various agricultural and non agricultural commodities. The exchange is a joint venture of Financial Technologies India Ltd.(FTIL) and National Agricultural Co-operative Marketing Federation of India Ltd (NAFED). NSEL is looking to tap the capital market and the long-term objective is to reduce FTIL’s stake to about 26 per centwhich is 99% at present. The company will initially start by shedding 5-10 per cent stake. Finally the objective is to go for an IPO after two years.

The present turnover of the exchange every day is close to Rs 50-60 crore. The exchange is hoping to have a daily turnover of close to Rs 1,500 crore over the next one year by introducing 15 commodities under its newly launched E-series over the next one year. The exchange is hoping at a turnover of at least Rs 100 crore in each of these commodities in the next one year.

The E-series of NSEL is designed to develop a cash segment in commodities for investments by the retail segment in the demat form. The exchange is looking at commodities like steel, copper, nickel, cadmium and aluminum among others.

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