Markets

FTIL sells 15 per cent stake in MCX

Financial Technologies (India) Ltd. (FTIL) on Sunday said that it entered into a share purchase agreement (SPA) to sell a 15 per cent stake in Multi Commodity Exchange (MCX) to Kotak Mahindra Bank Ltd. (KMBL) for a total consideration of Rs. 459 crore.

“This is subject to certain conditions to be fulfilled including regulatory approvals prior to closing of the transaction,” said FTIL in a press release.

FTIL said that it had “committed to divest its holding in MCX”.

The commodity markets regulator Forward Markets Commission (FMC) had ordered FTIL to divest its stake in FTIL from around 26 per cent to below 2 per cent.

The FMC had taken stern action against FTIL in the aftermath of around Rs. 5,600-crore scam reported in another FTIL promoted commodity exchange, National Spot Exchange Ltd (NSEL).

 While this stake sale comprises 15 per cent, “the company sold around 2 per cent to Rakesh Jhunjhunwala, and another about 4 per cent in the open market in the last few days,” said a spokesperson for FTIL.

 FTIL said that it “will continue with its divestment process to sell the balance 5 per cent stake subject to the receipt of binding bids and all regulatory and other approvals.”

This transaction culminates majority of the divestment process initiated by FTIL since February 27, 2014.

FTIL had appointed a restructuring committee to oversee this process, which appointed JM Financials as its investment banker and Ican as adviser.

“FTIL will continue to remain a technology partner to MCX and will work closely with MCX to take MCX to even greater heights,” said Venkat Chary, Non-Executive Chairman, FTIL.

FTIL promoted MCX in 2003 and it was the first exchange to be publicly listed from India.

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Printable version | Feb 26, 2021 10:09:45 AM | https://www.thehindu.com/business/markets/ftil-sells-15-per-cent-stake-in-mcx/article6231406.ece

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