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Financial Technologies India Ltd (FTIL) board has said it hasn’t received any formal bid for its stake sale in Multi Commodity Exchange. The board will meet again next Friday.
FTIL had put its 24% stake on block three months ago for which initially 10 investors had put non-binding offers. However later on series of development took place as Price Waterhouse Coopers submitted audit report on MCX where in it said that there were several deficiencies in functioning of the exchange and Chairman and group CEO of FTIL Jignesh shah was also arrested by Mumbai police in connection with the payment default in NSEL.
The board of directors of FTIL which met today to take stock of the stake sale development could not decide as there was no formal bid came to the investment banker JM Finance till date. The company after the board meeting however said in a statement that, “The board noted talks with bidders were progressing for the sale of stake in MCX. The Board also noted that discussions have not yet been completed. The investment banker expects finality to the transaction if there are no new developments. The Restructuring Committee of the Board will meet on May 30, 2014 to review the situation.“
There was strong buzz in the market on Thursday when MCX share rose 19.9%, that final bids have been placed. Investmeht banking sources said that in the current scenario, Kotak Mahindra banks seems to be the front runner and most eligible to pick up 15% stake in MCX.
