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ICICI Ventures to pick up 5% stake in MCX

ICICI Ventures is close to picking up a 5% equity stake in Multi Commodity Exchange of India (MCX). Earlier this year multinationals like Merrill Lynch and Citigroup had bought 5% each in the exchange. According to sources, talks with ICICI Ventures and a couple of other investors have been going on for the past couple of months. An announcement on the same is expected soon. Earlier this year when Financial Technologies (FT), the promoter of MCX, sold its stake to Citi and Merrill Lynch the exchange was valued at slightly over $1 bn. The stake sale to ICICI Ventures is also likely to be around the same valuation. ICICI Ventures may buy the stake from Financial Technologies. FT currently holds 49% in the exchange. The other major stakeholders of the exchange are HDFC Bank, SBI and other public sector banks holding a total 27%, FID Fund (Mauritus) — an affiliate of Fidelity International has a 9% stake, both Citi and Merrill Lynch have a 5% stake each, Passport India Investment (Mauritius) has 3% stake while GLG Financials Fund has another 2% stake. When contacted senior MCX officials said “We would not like to confirm or deny the development at this stage.” […]

India's realty sector to get $30 bn foreign investment

India's realty industry will grow at a fast clip of 30 percent over the next 10 years, offer 20-25 percent returns and secure foreign investment worth $30 billion, says a study by a leading industry lobby. 'The total size of investments in the domestic real estate sector is likely to be $102 billion,' says the study released Sunday by the Associated Chambers of Commerce and Industry of India (Assocham). 'At present, the domestic real estate market is expected to be $14 billion, in which the foreign direct investment contribution is estimated to be at $5-5.5 billion,' the study adds. 'The only problem that the real estate sector is currently confronting is with approvals for setting up townships, as a number of central and state agencies are involved,' said chamber president Venugopal N. Dhoot. […]