Financial Technologies India Ltd (FTIL) has sold 9.55% stake in its Multi-Commodity Exchange of India Ltd (MCX) to leading financial institutions ICICI Ventures, IL&FS and Kotak group. Under the deal, IL&FS bought 5%, while ICICI Ventures and Kotak?s India Growth Fund picked up 3.55% and 1%, respectively, in MCX.
MCX has been valued at around $1-1.1 bn, and going by this valuation, market sources reckon FTIL stands to make around Rs 400 crore by offloading the 9.55% stake. FTIL?s holding after this sale will come down to nearly 38%.
On September 28, Merrill Lynch and Citigroup acquired a 5% stake each in MCX from FTIL. In addition, FTIL also signed definitive agreements with Passport India Investment (Mauritius) Ltd and GLG Financials Fund for a further sale of 3% and 2% stake, respectively, in the exchange.
Other major shareholders in MCX include Fidelity International, NSE, Nabard, SBI and associates, Bank of India and HDFC Bank.
On the purchase by ICICI Ventures, KV Kamath, MD & CEO, ICICI Bank, said, ?FTIL is creating the next generation financial markets in India and globally, where the benefit of technology and price transparency empowers the masses to benefit from globalisation.
It is our philosophy to partner with growth-oriented companies that seek to leverage technology and the power of markets.?
?Over the last few years, the commodities futures market in India has experienced an unprecedented growth in terms of the number of modern exchanges, commodities allowed for derivatives trading and the value of futures traded. Among all this, MCX has demonstrated leadership by creating a scalable and technologically sound commodities trading exchange,? said Uday Kotak, executive VC & MD, Kotak Mahindra Bank Ltd.
On Friday FTIL stock rose by Rs 71, or 2.81%, to close the day at Rs 2,600.80 on the BSE.