Jignesh Shah-promoted Financial Technologies India Ltd. (FTIL) has decided to divest its 24 per cent stake in Multi Commodity Exchange (MCX) to comply with the order of commodity market regulator Forward Market Commission. The board of FTIL has also appointed a committee to propose and oversee a restructuring plan for the company “in its efforts to charter a new growth path for the company,” said FTIL in a press release.
“The restructuring plan shall also include FTIL divesting up to 24 per cent in MCX Limited in the long-term interest of both FTIL and MCX,” it said, adding, “The committee may also consider divestment of FTIL’s investment in other exchanges as a part of the restructuring. The decision is without prejudice to the legal rights and remedies of the company.”
FMC had told FTIL on December 17, 2013, that it could not any longer hold 2 per cent or more of the equity share capital of the MCX. FTIL is having around 26 per cent stake in MCX, which is the only commodity exchange that is listed on a stock exchange in the country.
“Restructuring plan shall include exploring the possibility of identifying a strategic partner who will help drive growth of the company and contribute towards leveraging FTIL’s core DNA of technology creation to drive strategic growth into the territory beyond financial markets,” it added.
It also said that the committee will appoint “an investment bank of repute to conduct an open and transparent bidding process for the divestments.”
