Financial Technologies India sells 5 pct stake in IEX for Rs 72.89 cr

Written by PTI | New Delhi | Updated: Mar 25 2014, 03:38am hrs
Financial Technologies IndiaFinancial Technologies India (FTIL) has 33.49 per cent stake in IEX. Reuters
Financial Technologies India (FTIL) today sold 5 per cent stake in Indian Energy Exchange (IEX) for Rs 72.89 crore Golden Oak (Mauritius) Ltd, in order to comply with the regulatory norms.

Currently, FTIL has 33.49 per cent stake in IEX. Post this transaction, the shareholding of the company will come down to 28.49 per cent.

"The company has entered into a Share Purchase Agreement (SPA) for sale of 13,64,787 equity shares of IEX to Golden Oak (Mauritius) Limited, for a consideration of Rs 72.89 crore," FTIL said in a BSE filing.

As per this deal, total valuation of IEX comes out to be Rs 1,620 crore, sources said, adding that FTIL's stake in IEX would further come down to 25.64 per cent after conversion of compulsorily convertible preference shares (CCPS) held by other shareholders.

The stake sale is as per the guidelines of the power market regulator Central Electricity Regulatory Commission (CERC), under which FTIL is required to reduce its stake in the power exchange to 25 per cent.

The deal comes in close heels of FTIL selling its subsidiary National Bulk Handling Corp. Ltd (NBHC) for Rs 242 crore.

FTIL, which is under investigation by multiple agencies after a Rs 5,500 crore payment crisis surfaced in end-July at its another subsidiary NSEL, has invited expression of interest for selling upto 24 per cent stake in its commodity exchange MCX.

Besides, capital markets regulator SEBI early this declared Jignesh Shah's FTIL as unfit to hold a stake in any stock exchange or clearing corporation and gave it 90 days to sell its holdings in such entities.