Kotak Mahindra Bank’s MCX Stake Soars 1,618% in 11 Years, Share Hits ₹10,000

Mumbai, Maharashtra: Kotak Mahindra Bank’s strategic investment in Multi Commodity Exchange of India (MCX) has turned into a massive success story, generating a 1,618% gain over 11 years. The MCX share crossed ₹10,000 for the first time on Wednesday, marking a milestone in India’s commodity market.

A Timely Investment During Crisis

In 2014, amidst the financial turbulence following the NSEL scam, Kotak Mahindra Bank invested ₹459 crore in MCX, acquiring a 15% stake at ₹600 per share. The investment was made at a time when financial technology firms were forced to sell their holdings. The bank’s promoter, Uday Kotak, who holds 25.7% in Kotak Mahindra Bank, took this bold step, which has now yielded remarkable returns.

By March 2022, Kotak Mahindra Bank’s MCX shares were available at ₹1,032 per share through IPO allotments, and today, the 15% stake is valued at approximately ₹7,887.27 crore.

MCX: India’s Leading Commodity Exchange

Established in 2003, MCX is India’s largest commodity exchange. Listed on NSE in March 2012 at an issue price of ₹1,032, the stock has now surged nearly tenfold from its IPO price. In the last year alone, MCX shares rose by 68%, reflecting strong market performance and investor confidence.

In the September quarter, MCX reported a profit of ₹197 crore, a 29% increase from ₹154 crore in the same period last year. Total revenue for the quarter reached ₹401 crore, up from ₹311 crore year-on-year.

Kotak Mahindra Bank’s Diversified Investments

Apart from MCX, Kotak Mahindra Bank holds stakes in several other companies, including:

• KFin Technologies – 7.69%
• India Homes – 1.26%
• Pioneer Embroideries – 2.38%
• Quadrant Televentures – 1.91%

These investments underscore the bank’s robust strategy of combining long-term value creation with opportunistic investments in high-potential firms.

Conclusion: Kotak Mahindra Bank’s calculated risk during a crisis has now turned into a record-breaking financial triumph, establishing MCX as a cornerstone in the bank’s portfolio and reinforcing Uday Kotak’s reputation as a visionary investor.