The Hindu Business Line : Financial Tech submits EoI to pick up 5% in regional bourses

Mumbai, Oct. 26 Financial Technologies India Ltd (FTIL), promoter of the Multi Commodity Exchange (MCX), has submitted expression of interest (EoI) to pick up 5 per cent stake each in three regional stock exchanges.

De-mutualisation

Without revealing the total investment planned, Mr Devang Neralla, Director, FTIL, said: “We have submitted our EoI to Delhi Stock Exchange, Vadodra Stock Exchange and Interconnected Stock Exchange.

The total investment will depend on the valuations which will be calculated after we receive the response.” FTIL move follows the Government’s proposal to de-mutualise stock exchange for unlocking value and to bring in more transparency.

The company has informed in an announcement on the BSE that “it has now decided not to pursue any more investments in the regional stock exchanges and any existing investments and/or any allotment of shares with reference to its submitted EOI in the regional stock exchanges will be retained as portfolio investments only.” The company’s exchange technology products powers Dubai Gold & Commodities Exchange, Safal National Exchange and Global Board of Trade, Mauritius, among others. FTIL raised about $115 million through Global Depository Receipts.

“The proceeds will be utilised for global M&A opportunities in exchange as well as technology space and investment in organic and inorganic global domain — centric businesses,” the company said.

Recently, global investment firm Citigroup and Merrill Lynch acquired 5 per cent each in FTIL’s subsidiary MCX at total investment of $162 million.

In addition, FTIL signed definitive agreements with Passport India Investment (Mauritius) Ltd and GLG Financials Fund for sale of a 3 per cent and 2 per cent stake, respectively, in MCX.

MCX received valuation ranging from $1 billion to $1.1 billion for the above transactions.

Value chain

“Investment proceeds in green field ecosystem ventures such as — National Spot Exchange Ltd, National Bulk Handling Corporation Ltd and others towards the development of complete value chain,” it said.

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