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FTIL sells 1.65 lakh shares of MCX-SX to Jhunjhunwala

Last month, crisis-hit FTIL signed agreements to sell its entire 5 per cent stake, comprising of 2.7 crore equity shares and 56,24,60,000 warrants, for Rs 88.41 crore.

FTIL sells 1.65 lakh shares of MCX-SX to Jhunjhunwala

Financial Technologies India Ltd  (FTIL) today said it has sold an additional 1.65 lakh shares to ace investor Rakesh Jhunjhunwala for Rs 2.47 lakh in stock exchange MCX-SX, thereby completely exiting the bourse. Last month, crisis-hit FTIL signed agreements to sell its entire 5 per cent stake, comprising of 2.7 crore equity shares and 56,24,60,000 warrants, for Rs 88.41 crore. While equity shares were sold only to Jhunjhunwala, the warrants were divested to him and some other investors.

In a filing to the BSE, FTIL said: “The company has entered into an amendment to the share purchase and warrant agreement with Rakesh Jhunjhunwala for the sale of additional 1,65,000 equity shares for a consideration of Rs 2,47,500”. Post completion of this transaction, the Jignesh Shah-led FTIL would completely exit MCX-SX, it added. For sale of its entire stake in MCX-SX, FTIL on November 25 had entered into a share and warrant purchase agreement with Jhunjhunwala.

Separate warrant purchase agreements were entered with Edelweiss Commodities Services, Trust Investment Advisors, Viral A Parikh, Nemish S Shah, Derive Investments, Kalpraj
Dharamshi, Dhanesh Sumatilal Shah, Uday Shah, Madhuri Kela, Renuka Shah, SKS Capital & Research and Madhu Vadera Jayakumar. FTIL has been in trouble ever since the Rs 5,600 crore payment scam surfaced at group firm NSEL in July last year.

The group is exiting from the exchange business and is focusing only on core technology business after commodity markets regulator FMC order in December 2013 declared FTIL and its founder Jignesh Shah as unfit to run any exchanges in view of this scam. In August, FTIL exited commodity exchange MCX by selling its 26 percent stake in the bourse, it had originally promoted. Of the total stake in MCX, 15 percent were sold to Kotak Mahindra Bank for Rs 459 crore.

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