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Our Bureau

Mumbai, Dec. 14 Financial Technologies India Ltd (FTIL) has offloaded about 10 per cent stake in its subsidiary Multi Commodity Exchange of India Ltd (MCX) to the ICICI Group, IL&FS and Kotak group for about Rs 470 crore.

In an announcement to the Bombay Stock Exchange, FTIL said “ICICI, IL&FS, Kotak groups have acquired 3.55 per cent, 5 per cent, 1 per cent equity stake respectively in Multi Commodity Exchange of India Ltd from Financial Technologies at an enterprise valuation of $ 1-1.1 billion (about Rs 4,400 crore).”

With this, the holding of FTIL in MCX has come down to 37.5 per cent.

Mr Jignesh Shah, Managing Director, MCX, said, "This milestone is a testimony of the quality of the institute we have built in India where the global and domestic best have converged."

Last year, ICICI Bank sold its 15 per cent holding in another national commodity exchange, NCDEX to investment bank Goldman Sachs (7 per cent) and US-based Intercontinental exchange (8 per cent) at a high premium.

Commenting on IPO plans of MCX, Mr Shah said “At this moment, we are not looking at further dilution. We will utilise the fund for creating infrastructure for the entire commodity eco-system.” Between November 16 and 30, MCX trade turnover rose 53 per cent to Rs 1,400 crore, accounting for 83 per cent of total turnover of 24 commodity bourses in India.

Earlier this year, Merrill Lynch and Citigroup bought five per cent stake each in the exchange. Financial Technologies closed at Rs 2600.80, up 2.81 per cent on the BSE.

The exchange records an average daily turnover of Rs 14,000 crore.

More Stories on : Commodity Exchanges | Mergers & Acquisitions | Software

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Financial Tech sheds about 10% in MCX for Rs 470 cr

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