MCX shares gain after Kotak Mahindra Bank agrees to buy stake

Written by Agencies | Mumbai | Updated: Jul 21 2014, 15:37pm hrs
Market TradingFinancial Technologies has entered into a an agreement to sell its 15 pct stake in Multi Commodity Exchange to Kotak Mahindra Bank for Rs 459 cr.
Shares in Multi Commodity Exchange of India Ltd (MCX) surged on Monday. Private sector lender Kotak Mahindra Bank Ltd agreed to buy a 15 percent stake in the company 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)(FTIL) and the deal is subject to regulatory approvals, the statement said.

MCX shares were trading up 8.25 per cent to 851.40 at 09:44 a.m.

Financial Technologies had announced on Saturday that it has entered into a Share Purchase Agreement (SPA) to sell its 15 per cent stake in Multi Commodity Exchange of India Ltd to Kotak Mahindra Bank for Rs 459 crore.

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.