BackFTIL shares hit over 11-year low
Shares declined after the govt ordered a merger between Financial Technologies India Ltd and its unit National Spot Exchange Ltd
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Mumbai: Shares of Financial Technologies India Ltd on Monday hit over an 11-year low after the government ordered a merger between Financial Technologies India Ltd (FTIL) and its unit National Spot Exchange Ltd (NSEL).
The stock touched a low of ₹ 76.70, a level last seen on 5 November 2004. It fell as much as 14.8%, its maximum fall since 22 October 2014. This was the fifth consecutive session when the stock was trading lower. Year-to-date, the stock fell 30%.
FTIL owns 99.99% of NSEL, on which trading was suspended after a ₹ 5,574.35 crore fraud at the latter came to light in July 2013.
The merger order, if it’s upheld by the courts, will mean that the outstanding liabilities of NSEL, which currently stand at ₹ 5,269 crore (after some repayments to small investors), will be absorbed by parent company FTIL, Mint reported.
FTIL, controlled by entrepreneur Jignesh Shah, said it will challenge the order in the Bombay high court.
In a statement, FTIL expressed disappointment over the order, which it said had placed the interests of trading clients above those of the shareholders in a listed company, the Mint report added.
At 9.41am, FTIL was trading at ₹ 85 on the BSE, down 5.6% from its previous close, while India’s benchmark Sensex index rose 1.7% to 23,373.77 points.
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