Metropolitan Stock Exchange Gains Attention — All You Need To Know

The Metropolitan Stock Exchange of India Ltd., also known as MSEI, is raising Rs 238 crore through a fresh equity issuance from big players, including Groww’s parent company, Zerodha’s Kamath brothers Fund Rainmatter, Share India Securities Ltd, and Securocorp Securities India Private Limited, as per the exchange's disclosures.

The bourse will issue 119 crore shares with a face value of Rs.1 each, priced at a premium of Rs.1 per share, to Billionbrains Garage Ventures Pvt. Ltd., Rainmatter Investments, Securocorp Securities India Pvt. Ltd., and Share India Securities Pvt. Ltd.

MSE is recognised by the market regulator, Securities and Exchange Board of India (SEBI) as a stock exchange. It offers trading platforms across various segments, including capital markets, futures and options, currency derivatives, and the debt market. The exchange has also secured SEBI’s in-principle approval to launch an SME trading platform.

Out of its newest investors, Share Capital has announced an investment of Rs.59.5 crore in the MSEI. This is for the acquisition of 29.75 crore equity shares, constituting a 4.958% stake in MSE’s post-issue paid-up share capital.

This values MSEI at around Rs 1,200 crore.

Commenting on the rationale, Share India said the investment aligns with the company’s goal of "strengthening its presence in the financial services and securities market ecosystem."

MSEI began operations in the year 2008, under the regulatory guidance of SEBI and RBI. In 2013, MSE launched its Capital Market Segment, Futures and Options Segment, along with its flagship index, the SX40, which commenced trading on Feb 11, 2013.

Two of its key investors in its earliest stages were Rakesh Jhunjhunwala and Radhakishan Damani. Presently, Damani owns just 0.89% stake, according to shareholding details available on the MSEI website.

Its key shareholders currently include Multi Commodity Exchange of India owns 6.9% stake in the exchange, as of September 30. Prominent non-resident Indian investor Siddharth Balachandran owns 4.9% stake. Banks like Union Bank of India, State Bank of India, Bank of Baroda, Punjab National Bank, Indian Bank, Bank of India, Axis Bank Limited, Indian Overseas Bank, Canara Bank - Mumbai, HDFC Bank Limited, and UCO Bank are also shareholders.

Despite a strong backing of quality investors, MSEI has so far been unable to make a mark in the stock exchange market, which is dominated by the National Stock Exchange.