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Financial Technologies (FTIL) sold a little over two million equity shares worth Rs 153.6 crore of Multi Commodity Exchange (MCX), promoted by it, in the open market. It was not clear who bought the shares.
The company had earlier said an exit from MCX was on its priority list. FTIL informed the stock exchange that its stake in the exchange was now down to 20 per cent, with a lock-in, from the earlier 26 per cent. MCX was listed in March 2012 and the promoters had to put 20 per cent stake under lock-in. Sources said FTIL would approach the Securities and Exchange Board of India (Sebi) to get the lock-in removed.
FTIL is selling stake in MCX following an order from the Forward Markets Commission (FMC), which had declared FTIL along with three others not fit and proper to run the commodity exchange. Hence, Sebi is likely to approve removal of the lock-in and allow sale of stake.
Following the removal of the lock-in, sources in the financial market said FTIL is expected to seal a deal to sell 15 per cent stake to an entity with credibility to run the exchange. The other five per cent is most likely to be sold again in the open market.
About 814,000 shares were sold on the BSE exchange at Rs 752.87 each and another 12,26,901 shares on the National Stock Exchange at Rs 752.79 apiece, generating Rs 61.3 crore and Rs 92.4 crore on the two exchanges, respectively.
On July 9, noted investor Rakesh Jhunjhunwala had bought around two per cent stake. Experts believe he intends to increase his stake in India’s largest commodity futures trading platform to five per cent. FMC had declared FTIL not “fit and proper” to run an exchange in the wake of the Rs 5,600-crore payment crisis from July 2013 on its subsidiary, National Spot Exchange. FTIL challenged this at the high court here. Following FMC’s order, Sebi ordered FTIL to exit from all exchanges, upheld by the Securities Appellate Tribunal.
FTIL also holds stake in MCX Stock Exchange and Indian Energy Exchange. Since Jhunjhunwala acquired a million shares in MCX, its scrip has risen 10.3 per cent, to close on Wednesday at Rs 749.70. That of FTIL rose 5.1 per cent to close on Wednesday at Rs 268.05 each.
