Goldman buys 7% stake in NCDEX

New York-based investment banker Goldman Sachs has acquired seven per cent stake, divested by ICICI Bank, in National Commodity and Derivatives Exchange Ltd for around $23.1 million

New York-based investment banker Goldman Sachs has acquired seven per cent stake, divested by ICICI Bank, in National Commodity and Derivatives Exchange Ltd (NCDEX) for around $23.1 million (Rs 106 crore).

‘‘The deal has already been concluded and the formalities for registration have to be done. Worldwide they are biggest in commodity trading and we are happy that their global knowledge will strengthen our working,’’ a top NCDEX official told agencies.

Goldman sachs would buy out almost 50 per cent of the exchanges’s original promoter ICICI Bank’s 15 per cent stake at a massive premium.

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The valuation of ICICI bank’s stake increased almost 50 times in the last couple of years. Commenting on how the deal would benefit the exchange, the official said: ‘‘they are a strategic investor and we believe their global commodity knowledge will help us to strengthen our commodity business and bring global best practices in commodity space in India’’. Earlier, Fidelity International picked nine per cent stake in Multi Commodity Exchange Ltd (MCX) for $49 million with the exchange valued at $ 518 million.

NCDEX, which has valued at $ 330 million (close to Rs 1,520 crore), is an unlisted, public limited and de-mutualized entity. With the entry of Goldman Sachs, the number of shareholders in NCDEX would increase to nine.

Beside ICICI Bank, the other seven are National Stock Exchange, LIC and NABARD each individually hold 15 per cent stake, IFFCO and Crisil hold 12 per cent stake, Canara Bank and Punjab National Bank have eight per cent stake each.