In a bold move IFFCO has decided to disinvest completely from the commodity handling and risk management company called National Collateral Management Services Limited (NCML). The decision was taken Monday in the Board meeting of the farmers’ cooperative.
Announcing this Dr. U S Awasthi tweeted “ #IFFCO board meeting held 2day on 20 July. It has agreed to disinvest completely from #National Collateral Management Services ltd a Bold act.”
The National Collateral Management Services Limited (NCML) is the country’s leading organization providing a bouquet of services to manage risks across various stages of commodity and inventory handling under a single umbrella.
Though the exact figure is yet not known, according to a rough estimate IFFCO would get double of its invested amount. IFFCO had invested close to Rs 40 crores, added a source whose veracity could not be verified. NCML was incorporated in 2004 and IFFCO was one of the firsts to invest in it.
Doing fine NCML is governed by an independent and professional Board which included two Directors from IFFCO namely Mr Arbinda Roy and Kamal Verma. It is obvious they would no longer be on the Board of NCML as a result of IFFCO disinvesting its shares completely.
Besides IFFCO, the NCML shareholders included Rabo Equity, IFC, Karur Vysya Bank, HAFED, NCDEX, Punjab National Bank, Corporation Bank, Bank of India, Canara Bank, HDFC Bank, ACE Geneva, Indian Bank and YES Bank.
“Our pan-India operations help us provide commodity handling and risk management services to clients across the country. We are geared to handle operations encompassing sale, purchase, trading, and movement of commodities & inventories”, claims the NCML website.