Rakesh Jhunjhunwala will buy 4.99% stake while a group of 12 individuals would purchase 56.25 crore warrants held by FTIL in MCX-SX for Rs88.42 crore
Financial Technologies (India) Ltd said it has entered into an agreement to sell its entire stake and warrants in MCX Stock Exchange (MCX-SX) for Rs88.42 crore.
FTIL said it has signed an agreement with Rakesh Jhunjhunwala to sell 2.70 lakh shares or about 4.99% stake in MCX-SX. Separately, the company has signed an agreement with a group of 12 individuals and companies to offload its entire 56.25 crore warrants in the Exchange.
The group includes, Edelweiss Financial Services Ltd, Trust Investment Advisors Pvt Ltd, Viral A Parikh, Nemish S Shah, Derive Investments, Kalpraj Dharamshi, Dhanesh Sumatilal Shah, Uday Shah, Madhuri Kela, Renuka Shah, SKS Capital & Research Pvt Ltd and Madhu Vadera Jayakumar.
With the current deal, Financial Technologies, which was declared, “not fit to hold stake in exchanges” has divested its entire investment in the exchange business.
The transaction is subject to fulfilment of certain conditions, including regulatory approvals, said FTIL in a statement. Post completion of the transaction, the company would have completely exited MCX-SX, it added.
In August, MCX-SX had said it has extinguished warrants held by Financial Technologies and transferred Rs56.25 crore non-refundable interest-free deposit issued against the warrants to the capital reserve.
The development will increase the exchange's net-worth to Rs160 crore from Rs110 crore and help meet SEBI minimum worth criterion of Rs100 crore, it said.
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