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Financial Technologies (India) Ltd (FTIL) on Friday announced the appointment of JM Financial Institutional Securities Ltd as financial advisor for divestment of stake in Multi Commodity Exchange (MCX). On February 27, FTIL had appointed a committee to look at the group’s restructuring, including sale of stake in MCX.
In an order in December, the Forward Markets Commission had said FTIL should reduce its stake in MCX from 26 per cent to less than two per cent, as it wasn’t ‘fit and proper’ to run a commodity exchange. This followed a Rs 5,574-crore default at FTIL-owned National Spot Exchange Ltd in August 2013.
While announcing the committee to oversee its restructuring, FTIL had said it planned to sell stake in its other exchanges, too, and well as find a strategic partner for FTIL. On Friday, the FTIL stock rose 11.89 per cent to close at Rs 384.7 on the BSE. The MCX stock closed at Rs 521.9.
Apart from MCX, FTIL is likely to sell stake in MCX-SX, in which it holds five per cent stake, as well as in Indian Energy Exchange, in which it holds about 30 per cent. It also plans to sell its stake in foreign exchanges. FTIL’s collateral management arm, National Bulk Handling Corporation, is also said to be up for sale and talks with prospective buyers in this regard are in the final rounds.
