Financial Tech sells 15% in MCX to foreign funds for $165 mn

Financial Tech sells 15% in MCX to foreign funds for $165 mn

Mumbai: Financial Technologies India Ltd said on 28 September Merrill Lynch and Citigroup acquired a 5% stake each in its unit, Multi Commodity Exchange of India Ltd (MCX).

The company has also signed definitive agreements to sell a 3% stake in MCX to Passport India Investment (Mauritius) Ltd and another 2% to GLG Financials Fund.

The transactions valued MCX at $1 billion to $1.1 billion, the company said in a statement. At that level, total proceeds from the deals would be $150 million to $165 million.

“The group has plans to set up exchanges and get into new ventures both here and abroad and we will be using the proceeds from the divestment in these ventures," deputy managing director of MCX, Joseph Massey, told Reuters.

For instance, a part of the proceeds will go towards the existing National Spot Exchange Ltd and National Bulk Handling Corp, both of which are promoted by Financial Technologies.

It had also announced plans to set up a power exchange in the country.

Massey did not rule out divestment of stake in any of the exchanges promoted by the group to other exchanges in India or overseas though he did not provide details.

Shares in Financial Tech were trading up 4.63% at Rs2,723 in the Mumbai market, after hitting a low of Rs2,612.55 in early morning deals.