FTIL likely to sell more of its assets

Deals for overseas exchanges, domestic arms likely to be sealed in FY14 itself

Financial Technologies India Ltd (FTIL), which last week sold its Singapore Mercantile Exchange (SMX) for $150 million, is understood to be looking for buyers for more of its ventures — global exchanges, as well as domestic subsidiaries. According to sources, some of these deals could be sealed in the current financial year itself.

Sources in the know say, FTIL is also looking to sell its stake in the Dubai Gold and Commodity Exchange (DGCX), in which the Jignesh Shah-promoted group holds 31 per cent equity and the Dubai government the rest. But reaching a deal there might not be easy, as FTIL is a minority shareholder.

The group had last month merged two of its exchanges based abroad — Bourse Africa and Mauritius’ Global Board of Trade (GBOT) — as these bourses catered to a few common markets. At present, trading takes place on GBOT, while Bourse Africa has the infrastructure. This merged entity, another of the group’s assets that could be sold, was expected to fetch good valuations, sources said.

Besides, FTIL is expected to lower its holding in MCX-SX, its stock exchange arm, from 10 per cent to five per cent within three months to meet regulatory requirements.

The group is also looking for buyers for its collateral management firm, National Bulk Handling Corporation (NBHC), which had been put up for sale even before the Rs 5,574-crore payment crisis at NSEL, another FTIL company, came to light in July. The sale hasn’t gone through yet, because the valuations being offered have been lower than expected.

The valuations FTIL is seeking for its subsidiaries could not be ascertained but the group has informed BSE in a submission that it is expecting to unlock value in some of its subsidiaries. It has also mentioned, “the company, as part of its non-linear business model, endeavours to unlock value by broadening investor base of its ventures”.

A spokesperson for the group, however, said: “We have already disclosed to the exchanges whatever we had to disclose; we have nothing more to say beyond that.”

In its filing to the exchanges, FTIL has said it has no liabilities to NSEL. But NSEL Investors’ Forum, a body representing the investors of the crisis-ridden exchange, still hopes the money raised by FTIL could be lent to the exchange if proceeds from the sale of NSEL borrowers’ attached assets are not enough to tide over the crisis.