Comments
Financial Technologies gained 4 per cent on Monday on back of the company expressing its intention to exit exchange-related business and focus on providing software to the booming e-retailing business.
Decision on OdinThe stock touched a high of ₹193 and low of ₹187 before closing at ₹190.
The company on Friday decided to hive off its most popular automated trading software Odin (Open Dealer Integrated Network) into a separate business unit for selling it to prospective bidders. FTIL decision to exit exchange-related business comes after it was declared not ‘fit and proper’ to hold stake in exchanges by regulators including Forward Markets Commission, SEBI and Central Electricity Regulatory Commission.
The National Spot Exchange, a subsidiary of FTIL, failed to settle trade worth ₹5,600 crore in August last year.
Vikram Dhawan, Director, Equentis Capital, said it would be advisable for retail investors to book profit on every rise as the company would be left with business of long gestation once Odin is hived off.
Merger threatThis apart, he said, the threat to merge NSEL with FTIL will hang as a Damocles sword. While the company is now fighting the known legal claims, there could be series of law suits and consequential damage claims once clarity emerges and investors see some scope for recovering money, he said.
Paras Bothra, Vice-President, Ashika Stock Broking, said the negativity surrounding the stock and the issues relating to the promoters are getting resolved. However, he said, it is very difficult to judge the kind of asset left on the table, post the decision to hive off Odin and sale of stake in MCX and Indian Energy Exchange.
Forestalling plan?There could be a few positive developments in the company from now on and retail investors should look to exit at the right time. For new investors, they should consider investing in MCX, rather than FTIL, he said.
It appears the decision to hive off Odin into a separate subsidiary is to forestall the possibility of NSEL merger with FTIL, said an analyst on condition of anonymity.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.