FTIL appoints JM Financial to advise on MCX stake sale

Written by fe Bureau | Mumbai | Updated: Mar 8 2014, 10:26am hrs
Financial Technologies-India (FTIL), which recently appointed a committee of directors to advise on the restructuring of the company, has appointed JM Financial as its financial advisor for the divestment of a 26% stake held in Multi Commodity Exchange (MCX).

On February 27, FTIL had announced that the committee, among other things, will also look at the option of the company divesting up to 24% of its stake in MCX, as mandated by an order by the Forward Markets Commission (FMC).

MCX is India's only listed bourse and the largest in the commodities space with an 86% market share in terms of the value of commodities traded in the futures market for the period of nine months ended December 2014. The MCX scrip lost 3.47% on Friday to close at R521.90. In the last three months, the scrip has gained nearly 18%.

Meanwhile, the restructuring plan will also include exploring the possibility of identifying a strategic partner who could help FTIL foray into domain beyond the financial market. Reports in the recent past have suggested that companies like Tech Mahindra and L&T have evinced interest in buying a stake in FTIL.

The committee comprises two non-executive independent directors Venkat Chary and S Rajendran along with legal advisor Berjis Desai and whole-time director Dewang Neralla, a long-time close confidant of Jignesh Shah, the chairman & group CEO of FTIL. The committee has set a time-limit of 120 days to execute the restructuring plan.