The shares of this small-cap company gained up to 8 percent after the company announced the recovery of technology costs for the old platform from MCXCCL.
With a market capitalization of Rs 15,960.96 Crores. Multi Commodity Exchange of India Ltd, On Tuesday, The shares closed at Rs 3,219.70 a share, an increase of 6.85 percent from the previous closing price.
According to the company filing, Multi Commodity Exchange of India Ltd decided to recover technology costs for the old platform from MCXCCL as per the existing Resource Sharing Agreement, only till October 15, 2023, on a “pay for use basis”, from October 16, 2023, to December 31, 2023, MCX will bear the remaining expenses, which amount to approximately Rs. 35 crores on the old platform.
Furthermore, it is suggested that MCXCCL receive an unsecured loan or intercorporate deposit of up to Rs. 25 crores for a maximum of six months, as needed, to meet their operational needs.
Looking into the company’s performance, Multi Commodity Exchange of India Ltd’s revenue increased by 29 percent from Rs 127 Crore in Q2FY23 to Rs 165 Crore in Q2FY24. During the same period, net profits decreased from Rs 63 crore to a loss of Rs 19 crore.
In the most recent fiscal year, Multi Commodity Exchange of India Ltd. disclosed return ratios of 10.3% for return on equity and 13.2% for return on capital employed.
The share price of Multi Commodity Exchange of India Ltd has increased by 125 percent in the last six months and 115 percent in the year to date. For instance, if an investor invested Rs 1 lakh a year to date the current value will be 2.25 lakhs.
Multi Commodity Exchange of India Ltd’s recent shareholding pattern, The domestic Institutional Investors own 56.45 percent while Retail shareholders own an 18.09 percent stake in the company and Foreign Institutional Investors own a 25.33 percent stake.
The first listed exchange in India is the Multi Commodity Exchange of India Ltd. It’s an online commodity derivatives exchange that makes it easier to trade commodity derivatives, offering a platform for risk management and price discovery.
Written by:- Abhishek Singh
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