The deal values FT at Rs 2,304 crore.
Reliance-Anil Dhirubhai Ambani Group (ADAG) company Reliance Mutual Fund today bought 5.23 per cent stake in Financial Technologies, the promoter of India’s largest commodity exchange, Multi-Commodity Exchange of India (MCX). The shares were bought from the Fidelity group at Rs 502.50 per share. The deal values FT at Rs 2,304 crore.
The FT share price today went up 8.69 per cent to Rs 567 on the Bombay Stock Exchange, resulting in a market capitalisation of Rs 2,602 crore.
Fidelity, which holds 10.65 per cent in FT, sold 8.20 per cent of it in a block deal for Rs 188.80 crore. Apart from Reliance Mutual Fund, several high net-worth individual investors bought the balance 2.97 per cent.
Five years back, ADAG company Reliance Capital had purchased FT’s shares. The stakes were later sold at higher price levels.
Reliance ADAG has strategic interests in the exchanges business. Besides holding stake in the Hong Kong Mercantile Exchange, in India, the group holds 10 per cent stake in the commodity exchange — National Multi-Commodity Exchange — through Reliance Money.
It is also going to start a spot commodity exchange under its subsidiary, Reliance Spot Exchange Infrastructure, soon.
Sundeep Sikka, chief executive officer, Reliance Mutual Fund, said, “The investment will be allocated across various mutual fund schemes that are currently managed by the asset management company.”
He, however, declined to comment whether Reliance Mutual Fund had any strategic intention behind the deal or was it just another investment.
For Fidelity, this is part of a broader selling plan for some of the investments of its Indian venture. After the recent exit of Fidelity’s high-profile Indian fund manager, Arun Mehra, new managers are understood to have started selling some existing investments.
FT’s deal is one of the most high-profile deals done by Fidelity. Fidelity has been with the FT group for more than four years. It also holds stake in the FT-promoted commodity exchange, MCX.
