The National Commodity and Derivatives Exchange (NCDEX) has secured over Rs 500 crore from a mix of domestic and global investors, including Citadel Securities, Tower Research, and Acacia Partners, with plans to raise Rs 750 crore to fund its expansion into the equity markets.

The funds will be used to develop infrastructure for NCDEX's transition into equity trading, starting with the cash segment and eventually expanding into derivatives, aiming to compete with established exchanges like BSE, NSE, and MSE.

Major investors such as Citadel Securities and Tower Research have committed Rs 17 crore and Rs 34 crore respectively for minority stakes, with the capital designated for building NCDEX's equities business.

The fundraising was discussed during a board meeting on Thursday and will be presented for shareholder approval on September 1.

Existing institutional shareholders like LIC, NABARD, and Punjab National Bank will see their stakes diluted as new investors increase their ownership in NCDEX.

The fundraising was conducted through a preferential share issue at Rs 197.34 per share, with NCDEX's unlisted shares currently trading at Rs 415, reflecting a 25% increase over the last month.

NCDEX has received in-principle approval from SEBI to enter the equities segment and expects final approval by the end of the fiscal year, with a planned launch by August next year starting with the cash segment and then derivatives.

This move is part of NCDEX’s strategic push into equities, aiming to leverage its strong presence in rural and agricultural markets to attract traders from smaller towns and broaden its financial market footprint.

NCDEX plans to blend its agricultural expertise with broader financial ambitions, targeting equity traders from smaller towns and rural areas to diversify its user base.

Key investors include prominent figures like Radhakishan Damani, Ramesh Damani, Madhusudhan Kela, and Sunil Singhania, along with brokers Zerodha and Groww, and global firms like Citadel Securities and Tower Research.

Institutional investors such as Groww, Kotak Life Insurance, and JM Financial have confirmed participation, alongside commitments from brokers, high-net-worth individuals, private equity funds, and other stakeholders.

Global investors, including Citadel Securities led by Kenneth Griffin and Tower Research, have invested alongside domestic financial institutions, highlighting broad international and domestic confidence in NCDEX’s expansion plans.