Financial Technologies (FTIl) on Monday said it has completed the deal to sell its 15 per cent stake in commodity exchange MCX to Kotak Mahindra Bank for Rs 459 crore, marking the company’s exit from the bourse.
“FTIl today completed the sale of 15 per cent equity stake in Multi Commodity Exchange of India (MCX) to Kotak Mahindra Bank for a consideration of Rs459 crore. With this, FTIl’s shareholding in MCX is nil,” Jignesh Shah-led company said in a statement.
last week, FTIl concluded a long-term 10-year technology contract with MCX for providing software support and managed services on mutually agreed terms and conditions and further renewal as may be mutually agreed upon, it added.
The technology agreement with MCX paved the completing of the deal with Kotak Mahindra Bank.
“I am confident that Kotak Mahindra Group will contribute as significant minority shareholders towards the growth of exchange. We look forward to a constructive partnership with MCX as their technology partner,” FTIl MD & CEO Jignesh Shah said in a statement.
India’s largest commodity exchange MCX was set up by its erstwhile promoter FTIl in November 2003. The exchange became the country’s first exchange to be listed in March 2012. FTIl originally held a 26 per cent stake in MCX. It has divested stake in MCX after market regulator FMC had declared the company unfit to run any exchange in the wake of Rs5,600 crore payment crisis at group company National Spot Exchange ltd (NSEl).