Last November, Financial Technologies had entered into an agreement to sell 26.6 per cent stake for Rs 576.84 crore to a clutch of investors, including TVS Shriram Growth Fund. However, that agreement has expired and FTIL has again started selling its stake. It is selling a 16.6 per cent stake now and discussions for selling the remaining stake is in the pipeline.
The agreement was signed with DCB Power Ventures, Kiran Vyapar, Agri Power and Engineering Solutions, and Aditya Birla Capital Advisors (on behalf of Aditya Birla Trustee Company, trustees to the Aditya Birla Private Equity Fund I).
“FTIL held a 26.6 per cent stake in IEX of which divestment agreement for a 16.6 per cent stake was already signed. The company is looking for another buyer for the remaining 10 per cent stake,” said a company source.
The new agreement followed after the Bombay High Court on June 12 stayed a notice by the economic offences wing (EOW) of the Mumbai Police on the condition that FTIL deposit before the court Rs 84 crore from the sale proceeds within four weeks from the completion of such sale.
The EOW order was based on the recommendation by the Central Electricity Regulatory Commission order for cancelling licence of IEX.
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Also, the share purchase agreement dated November 5, 2014 now stands terminated on account of communication received from some of the purchasers on non-fulfilment of certain conditions and due to the EOW notice restraining sale of assets of FTIL.
The value is considered at par with earlier sales and the sale proceeds would go into FTIL’s kitty.
The transaction is subject to fulfilment of certain conditions including the buyout of the application software and other technology for its own use by IEX and regulatory approvals, FTIL said in a communication to the Bombay Stock Exchange.
The company and few purchasers would endeavour on best effort basis s to sell the remaining 10% stake held by FTIL in IEX which will be kept under escrow as per the terms of the new share purchase agreement and an escrow agreement to be executed between FTIL, the purchasers under the new agreement and an escrow agent.