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Confirming market buzz to this effect, Financial Technologies (FTIL) announced on Thursday it was setting up a committee to find a strategic partner and also to divest stake in its various ventures, including 24 per cent in the Multi Commodity Exchange (MCX).
It appointed a four-member panel to oversee a restructuring plan in this regard. Anil Singhvi, founder and chief executive of Ican Investment Advisors has been appointed corporate financial advisor. The committee comprises two non-executive independent directors on the FTIL board, Venkat Chary and S Rajendran, beside Berjis Desai, legal advisor, and Dewang Neralla, a wholetime director. They “will propose and oversee FTIL’s efforts to charter a new growth path and submit the report in 120 days”, stated the company on Thursday evening.
The announcement said it was also looking for an investment bank to conduct a transparent bidding process for the divestments in other exchanges.
The Forward Markets Commission, the commodities market regulator, had issued an order that FTIL and three directors of National Spot Exchange (NSEL) had proved unfit to run the latter, following the mass default scam there. FTIL has 99 per cent stake in NSEL. Later, FMC told MCX to ensure FTIL, its erstwhile promoter, cut its stake from 26 per cent to only two per cent. This has been challenged by FTIL in the high court here and the case is to be heard on Friday.
The divestment plan covers FTIL stake in other exchanges, too. It has five per cent in the MCX Stock Exchange and 29 per cent stake in the Dubai gold and commodity exchange. It also owns two other exchanges abroad. It is also said to be finalising a deal to hive off its warehousing arm, the National Bulk Handling Corporation.
"The proposed restructuring plan of the company includes identifying a strategic partner which will help drive growth of the company and contribute towards leveraging FTIL’s core DNA of technology creation, to drive strategic growth into the newer territory beyond financial markets," said FTIL. Also, that the decision of the board was without prejudice to its legal rights and remedies.
