Cooperative major Indian Farmers Fertiliser Cooperative Ltd (IFFCO) has increased its stake in National Commodity & Derivatives Exchange Ltd (NCDEX) by buying a 1.12 per cent stake from Renuka Sugars for about Rs. 10 crore.
Iffco’s stake in commodity exchange NCDEX has now reached 10 per cent.
Last week, leading sugar firm Shree Renuka Sugars Ltd sold a 7.5 per cent stake in NCDEX to investors, including the National Stock Exchange NSE) and Indian Farmers Fertiliser Cooperative Ltd (IFFCO), for Rs. 66.54 crore.
“We have bought 1.12 per cent stake in NCDEX at Rs. 175 per share,” a senior Iffco official said.
Of the stake sold by the sugar major, 5 per cent was acquired by the NSE, an original promoter of NCDEX.
Renuka Sugars sold a 1.12 per cent stake to Iffco and another 1.38 per cent to Star Agriwarehousing and Collateral Management.
Following the transaction, Renuka Sugars holds 5 per cent in NCDEX, the country’s second-largest commodity exchange.
NSE is now the largest shareholder in NCDEX with a 15 per cent stake, follod by Life Insurance Corporation (LIC) and National Bank for Agriculture and Rural Development, with 11.1 per cent each.
Iffco and Oman India Joint Investment Fund have a 10 per cent stake each in NCDEX.
Iffco is the largest soil nutrient producer in the country, with an annual output of 4.4 million tonnes of urea and 4.3 million tonnes of complex fertilisers.
Besides, Iffco owns shares in Indian Potash Ltd, Industries Chimiques du Senegal, Oman India Fertiliser Company in Oman and Jordan India Fertiliser Company.
The company is also present in the insurance sector through a joint venture firm, Iffco-Tokio General Insurance Ltd.