Reliance Capital buys over 9% in Financial Tech

Reliance Capital, the financial services arm of the Rs 80,000 crore Reliance group, has acquired a little over 9 per cent stake in Financial Technologies for an undisclosed amount.

Reliance group Chairman Mukesh Ambani had bought a small stake "" less than 1 per cent "" in his name, sources said, adding that the transaction was at Rs 65 a share.

Promoted by technocrat Jignesh Shah, Financial Technologies is an information technology company specialising in transaction technology. It has over 300 clients in the securities and banking industries.

Only recently, Financial Technologies promoted the Multi-Commodity Exchange.

Indian promoters hold a 61.46 per cent stake in Financial Technologies and 16.52 per cent is with the public. The company's share price doubled from Rs 41.80 on December 1, 2003, to Rs 79.20 today on the Bombay Stock Exchange.

Sources tracking the development said Mukesh Ambani had taken a liking for the company when he went to inaugurate the MCX.

Financial Technologies posted revenues of Rs 13.9 crore and a net profit of Rs 2.6 crore in the year ended March 2003.

For the quarter ended September 2003, for which data is available, the company posted revenues of Rs 6.4 crore and a net profit of Rs 2.78 crore.