FTIL not to subscribe to MCX-SX rights issue

Financial Technologies India Ltd (FTIL) has decided not to subscribe to the rights issue proposed by the MCX-Stock Exchange (MCX-SX), in which the company holds five per cent stake, say sources. The exchange plans to complete 1:1 rights issue by the end of this month. An FTIL spokesperson said, “If the rights issue is fully subscribed, our holding in MCX-SX’s equity will fall to 1.73 per cent.”

JM Financial Institutional Securities, appointed by FTIL to help in the divestment of its stake in Multi Commodity Exchange (MCX), has invited expressions of interest in this regard. The process of appointing an investment banker for inviting a strategic partner in FTIL is underway.

FTIL also holds stake in Dubai-based exchange DGCX, as well as two other foreign exchanges — Boursa Africa and Global Board of Trade.

The company had set up a committee to consider a restructuring plan for FTIL. As part of the restructuring, “divestment of FTIL’s investment in other exchanges” will also be considered, FTIL has said.

On Monday, the FTIL stock rose 4.8 per cent to close at Rs 402.7 on the BSE, while the MCX stock closed at Rs 533.05, up 2.14 per cent. MCX has Rs 900 crore of cash, stake in MCX-SX, stake in MCX-SX Clearing Corporation, four per cent in DGCX and warrants in MCX-SX.