Thursday, December 26

Groww, Zerodha parents, others set to invest Rs 238 crore in Metropolitan Exchange

Mumbai: Billionbrains Garage Ventures, Groww's parent, Zerodha's Rainmatter Investments, Securocorp Securities India and Share India Securities will jointly invest ₹238 crore in the Metropolitan Stock Exchange (MSE)The bourse in its board meeting on Tuesday approved the issuance of 119 crore shares to these investors at ₹2 apiece, in a fresh attempt to revive the beleaguered market intermediary.Share India Securities, a listed entity, said it will invest ₹59.5 crore in MSE by acquiring 29.75 lakh shares, constituting 4.96% of the post-issue paid-up share capital of the exchange. The investment shall be completed within 60 working days, according to a disclosure to the exchange by the company. 116665994"We see this milestone as a pivotal step toward expanding our product offerings, addressing the needs of domestic and international institutional investors especially in view of new regulatory measures," said Sachin Gupta - CEO & whole-time director of Share India Securities. "The anticipated trading volumes from these new products are expected to enhance revenue visibility and align with the market's growing emphasis on long-term strategies."The exact investments by Billionbrains, Rainmatter and Securocorp in Metropolitan could not be ascertained.Radhakishan Damani, founder of supermarket chain Dmart, Enam's co-founder Nemish Shah and banks such as SBI, Bank of Baroda, Punjab National Bank, HDFC Bank and Union Bank of India are among its shareholders.The exchange, formerly known as MCX-SX, was founded by Jignesh Shah in 2008 and soon emerged as a competitor to NSE and BSE. Shah ceased to be the owner of the exchange after the NSEL scam. Trading in derivatives of its flagship equity index SX40, a free float-based index of 40 large-cap stocks, started in May 2013.As of March 31, the exchange posted a consolidated loss of ₹48.74 crore compared to a loss of ₹18.67 crore in the previous year. The revenue from operations declined 25.14% to ₹7.36 crore from ₹9.21 crore in the same period.
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