Metropolitan Stock Exchange to raise Rs 238 Cr from Groww promoters, Nithin Kamath's Rainmatter, others
The exchange's board in its meeting on Tuesday approved the issuance of 1.19 billion equity shares at Rs 2 per share, comprising Rs 1 face value and Rs 1 premium to these four investors through a private placement
The Metropolitan Stock Exchange of India (MSE) is set to raise Rs 238 crore from four entities including Billionbrains Garage Ventures—Groww's parent—and Zerodha's Rainmatter Investments in a bid to stay afloat.
Others who invested in MSEI are BSE-listed Share India Securities and Securocorp Securities India.
The exchange's board in its meeting on Tuesday approved the issuance of 1.19 billion equity shares at Rs 2 per share, comprising Rs 1 face value and Rs 1 premium to these four investors through a private placement, according to a disclosure on MSEI's website.
The proposed allotment is subject to shareholder approval at the upcoming extraordinary general meeting (EGM).
Among the participating investors, Share India Securities has committed Rs 59.5 crore for a 4.958% stake in MSE.
In its regulatory filing, Share India Securities emphasised that this was a "strategic decision" aligned with its goal of strengthening its presence in the financial services and securities market ecosystem.
The investment will give Share India Securities 29.75 crore equity shares at Rs 2 per share.
"We are excited to announce our strategic investment of approximately Rs 60 crore in the MSE, marking a pivotal milestone in our journey to support and shape the future of Indian financial markets," Sachin Gupta, CEO and Whole-time Director of Share India Securities, said.
MSE, which has struggled to maintain its position in a competitive market dominated by larger exchanges like NSE and BSE, is taking measures to revive its operations.
Founded in 2008, the exchange initially gained traction in the currency derivatives segment but has faced challenges in scaling up its capital market, futures & options, and debt market segments.
Despite its struggles, MSE remains optimistic about its future, with this fresh infusion of funds expected to provide a much-needed lifeline.
The exchange's turnover for FY24 stood at Rs 7.36 crore, down from Rs 9.21 crore in FY23.