FTIL, which has to bring down its stake to 2 per cent in MCX following the order from the regulator Forward Market Commission (FMC), had offloaded 4 per cent stake in the commodity exchange on July 16.
In December, FMC had declared FTIL as unfit to run any exchange after a Rs 5,600 crore payment crisis at group company National Spot Exchange Ltd (NSEL).
The regulator asked FTIL to reduce its stake in MCX to 2 per cent from 26 per cent.
"Subject to certain conditions to be fulfilled, including regulatory approvals prior to closing of the transaction, FTIL has entered into a Share Purchase Agreement (SPA) to sell 15 per cent stake in MCX to Kotak Mahindra Bank Ltd (KMBL) for a total consideration of Rs 459 crore," FTIL said in a statement.
FTIL had committed to divesting its holding in MCX. This transaction culminates the majority of the divestment process initiated by FTIL since February 27, it added.
Commenting on the development, FTIL Non-Executive Chairman Venkat Chary, said, "We are happy that Kotak Mahindra Bank will become a significant minority shareholder in MCX and will contribute towards the next phase of growth of MCX as a responsible public shareholder."
"We are satisfied that we could divest to KMBL and wish both MCX and KMBL a great future. FTIL will continue to remain a technology partner to MCX and will work closely with MCX to take MCX to even greater heights," he said.
FTIL had appointed a restructuring committee to oversee this process, which appointed JM Financials as its investment banker and Ican as advisor.
Despite many challenges since the initiation of the divestment process, FTIL was successful in generating and negotiating a binding offer from one of India's largest private sector banks, KMBL, thereby endorsing the credentials of a strong world-class institution promoted by FTIL, the company said.
India's Kotak Mahindra Bank to buy 15 pct stake in MCX
(Reuters) - Private sector lender Kotak Mahindra Bank has agreed to buy a 15 percent stake in Multi Commodity Exchange of India (MCX) for 4.59 billion rupees ($76.1 million), the bank said in a statement late on Sunday.
Kotak will purchase the stake from bourse operator Financial Technologies (India) Ltd and the deal is subject to regulatory approvals, the statement said.
The MCX offers trading in commodity futures including metals, crops and spices.
The Securities and Exchange Board of India, the country's capital markets regulator, had ordered Financial Technologies to sell its entire stake in MCX in March.