Jignesh Shah-promoted Financial Technologies India Ltd (FTIL) has completely sold its stake in Indian Energy Exchange (IEXO) by selling the last chunk of five per cent stake it held in the energy bourse.
In a filing to the stock exchanges, FTIL said that it has “concluded the sale of balance five per cent equity stake in IEX on fully diluted basis” to three entities namely Siguler GUFF NJDM Investment Holdings Ltd (3.02 per cent), SG BRIC III Trading LLC (1.61 per cent) and Madison India Opportunities III (0.37 per cent).
With the latest transactions, the company has completed the sale of its entire 25.64 per cent stake in IEX, FTIL said in the filing.
The listed entity was forced to sell its stake in the energy exchange following a May 2014 order by the power sector regulator, the Central Electricity Regulatory Commission (CERC).
The company is under the scanner of various regulatory agencies like the Securities and Exchange Board of India (SEBI), the Economic Offences Wing (EOW) of the Mumbai Police and the Enforcement Directorate (ED) for its alleged role in the Rs. 5,574 crore settlement scam at the National Spot Exchange Ltd (NSEL) that came out in the open in July 2013.
The regulator ruled that FTIL is an unfit entity to hold a stake in any exchange.
The company has legally challenged the orders and a final decision is still awaited. The government has also passed a draft order for the merger of NSEL with FTIL.
In June, the company had entered into a share purchase agreement with a clutch of entities to sell 16.6 per cent stake in the exchange for Rs. 357.06 crore.
The buyers included Aditya Birla Private Equity and DCB Power Ventures, among others.
Thereafter it sold the remaining stake in smaller tranches.
Interestingly, in November 2014, FTIL had entered into an agreement with Chennai-based TVS Capital Funds to sell its 25.64 per cent stake in the exchange for Rs.577 crore.
The earlier sale agreement, however, was not closed due to legal and regulatory issues.
