Shares of Financial Technologies (India) and Multi Commodity Exchange of India surged 4.39% and 9.12% at 11:38 IST on BSE after FTIL said it has entered into a share purchase agreement to sell 15% stake in MCX to Kotak Mahindra Bank.
The announcement was made before market hours today, 21 July 2014.
FTIL (up 4.39% at Rs 279.10) and MCX (up 9.12% at Rs 857.95) edged higher.
Shares of Kotak Mahindra Bank were up 1.96% at Rs 953.40.
Meanwhile, the S&P BSE Sensex was up 107.76 points or 0.42% at 25,749.32.
FTIL said it has entered into a share purchase agreement (SPA) to sell 15% stake in Multi Commodity Exchange of India (MCX) to Kotak Mahindra Bank (KMBL) for a total consideration of Rs 459 crore. The final closing is subject to certain conditions to be fulfilled including regulatory approvals.
After the latest stake sale, FTIL's shareholding in MCX will come down to 5%, which is under lock-in till 7 March 2015. In a statement, FTIL said it will continue with its divestment of process to sell the balance 5% stake in MCX subject to receipt of binding bids and regulatory and other approvals.
Commenting on the development, Mr. Venkat Chary, Non-Executive Chairman, FTIL said, "We are happy that Kotak Mahindra Bank will become a significant minority shareholder in MCX and will contribute towards the next phase of growth of MCX as a responsible public shareholder. We are satisfied that we could divest to KMBL and wish both MCX and KMBL a great future. FTIL will continue to remain a technology partner to MCX and will work closely with MCX to take MCX to even greater heights".
MCX's net profit fell 42.9% to Rs 43.75 crore on 50.4% decline in net sales to Rs 59.81 crore in Q4 March 2014 over Q4 March 2013.
MCX is a dominant player in commodity exchanges in India.
FTIL reported a net loss of Rs 371.25 crore in Q4 March 2014 as against net profit of Rs 87.81 crore in Q4 March 2013. Net sales declined 60.8% to Rs 55.25 crore in Q4 March 2014 over Q4 March 2013.
FTIL is among the global leaders in offering technology IP (Intellectual Property) and domain expertise to create and trade on next generation financial markets.
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