Financial Tech to sell part MCX stake via float

Listed company Financial Technologies (FTIL) will divest around 9 per cent of its total 64 per cent stake in MCX in favour of the public and others, through the latter's first public offer.

FTIL will offer for sale its 36 lakh shares held in MCX while another 14 lakh fresh shares will be issued by the exchange to raise funds "to upgrade its technology, for strategic initiatives, acquisition and general corporate purposes."

Going by past valuations, the issue is expected to raise around Rs 300 crore as a similar deal involving 9 per cent of the MCX's sale was done with Fidelity Investments for around Rs 216 crore a little more than a month ago.

However, most of the money raised will end up with FTIL in which Indian public holds around 22.4 per cent stake, the promoters led by Jignesh Shah hold around 47 per cent and foreign funds hold about 23 percent.

The promoters were however tight-lipped about their plans to use the money that flows from the partial divestment of FTIL's stake in MCX.

"There is a lot still left to be done in FTIL too," Shah told Business Standard.

Through the offer, around fifty lakh shares will be offered, though only around 40.36 lakh will be to the public as the rest has been reserved for "business associates," existing FTIL shareholders and "eligible employees."

Pre-issue, the number of shares in MCX will be around 3.9 crore and post IPO, the number will increase to around 4 crore.

The issue is for 12.39 per cent of the post-issue capital while the net issue to the public, around 40.36 lakh shares, would constitute 10 per cent of the same. The offer price will be determined through book-building.