Home / Market / Stock-market-news /  FTIL shares rise over 90% in a week on MCX stake sale buzz

Mumbai: Shares of Financial Technologies (India) Ltd (FTIL) rose more than 90% in six trading sessions on speculation that it might raise funds to tackle the payments crisis at its embattled unit National Spot Exchange Ltd (NSEL).

FTIL’s shares have risen 93.9% to 217.40 since 4 September.

On Thursday, the shares surged around 18.3% on BSE, while shares of Multi Commodity Exchange of India Ltd (MCX), another unit of FTIL, gained 4.9% to 482.25. The 30-share benchmark Sensex fell 1.1% to 19,781.88 points.

MCX shares were also boosted after the capital markets regulator renewed its permit for another year on condition that it strengthens corporate governance.

FTIL may sell some of its 26% stake in MCX to raise funds, brokers said. A company spokesperson declined to comment.

“Financial Technologies and MCX shares are boosted by market talk of a promoters’ stake sale in MCX. It looks like there could be some relief to FTIL if it raises money through this route," a broker said, requesting anonymity.

Earlier this week, BSE and the National Stock Exchange (NSE) sought clarifications from MCX about a substantial increase in its trading volume.

“Substantial increase in trading volumes has been observed in MCX. The exchange, in order to ensure that investors have latest relevant information about the company and to inform the market place so that the interests of the investors are safeguarded, had written to the company," NSE said in statement on Tuesday.

MCX has replied saying it will not speculate or comment on the increase in volumes and price, NSE said in the statement.

On Tuesday, crisis-ridden NSEL failed to make scheduled payments to investors yet again even as an independent audit indicated significant shortage of stocks in nine warehouses of seven of the bourse’s defaulters. It was the exchange’s fourth default in a row.

The commodities exchange paid only 7.77 crore against its weekly settlement dues of 174.72 crore. The exchange, which suspended all trading in one-day forward contracts on 31 July without assigning any reason, defaulted on its first three payouts in the preceding three weeks.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.
Recommended For You
Edit Profile
Get alerts on WhatsApp
Set Preferences My ReadsFeedbackRedeem a Gift CardLogout