Financial Technologies (India) rose 3.08% to Rs 369.40 at 11:30 IST on BSE after the company said it raised Rs 72.89 crore by selling a partial stake in Indian Energy Exchange to Golden Oak (Mauritius).
The company made the announcement after market hours on Monday, 24 March 2014.
Meanwhile, the BSE Sensex was down 45.81 points, or 0.21%, to 22,009.67.
On BSE, so far 1.70 lakh shares were traded in the counter, compared with an average volume of 9.08 lakh shares in the past one quarter.
The stock hit a high of Rs 371.65 and a low of Rs 358.50 so far during the day. The stock hit a 52-week high of Rs 870.30 on 28 May 2013. The stock hit a 52-week low of Rs 102.05 on 30 August 2013.
The stock had outperformed the market over the past one month till 24 March 2014, rising 11.05% compared with the Sensex's 5.98% rise. The scrip had also outperformed the market in past one quarter, rising 108.22% as against Sensex's 4.86% rise.
The small-cap company has an equity capital of Rs 9.22 crore. Face value per share is Rs 2.
Financial Technologies (India) (FTIL) said it has entered into a share purchase agreement (SPA) for sale of 13.64 lakh equity shares (face value of Rs 10 each) of Indian Energy Exchange (IEX) to Golden Oak (Mauritius), for a consideration of Rs 72.89 crore.
The above said sale of shares was to comply with Central Electricity Regulatory Commission (CERC) Regulations to bring down the company's stake in IEX to 25%. Accordingly, the company has consummated the above said transaction, FTIL said in a statement.
Subsequent to the above said transaction, the shareholding of FTIL in IEX will be 28.49% and on fully diluted basis 25.64%.
On 14 March 2014, FTIL announced that it sold its entire stake in National Bulk Handling Corporation (NBHC) to IVF Trustee Company for Rs 241.74 crore. The transaction is likely to be completed between 15 April 2014 to 30 April 2014, subject to shareholders approval by way of postal ballot, FTIL said in a statement.
On 27 February 2014, FTIL announced that its board has appointed a committee to propose and oversee a restructuring plan for the company in its efforts to charter new growth path for the company. The restructuring plan shall include exploring the possibility of identifying a strategic partner who will help drive growth of the company and contribute towards leveraging FTIL's core strength of technology creation to drive strategic growth beyond financial markets.
The restructuring plan shall also include FTIL divesting up to 24% in Multi Commodity Exchange of India (MCX) in the long-term interest of both FTIL and MCX. The committee may also consider divestment of FTIL's investment in other exchanges as a part of the restructuring. The decision is without prejudice to the legal rights and remedies of the company.
The committee will appoint an investment bank of repute to conduct an open and transparent bidding process for the divestments as well as identifying strategic partner/investor in FTIL, the company said.
The committee has been given a time of not exceeding 120 days for the above, FTIL said.
Jignesh Shah is currently the chairman of FTIL, which owns and runs the National Spot Exchange (NSEL), where a Rs 5600 crore payment crisis is being probed by multiple agencies.
FMC in its order dated 17 December 2013 said that FTIL, the promoter and anchor share-holder holding 26% of the paid-up capital of the commodity exchange MCX, is not 'fit and proper person' to continue to be a shareholder of 2% or more of the paid-up equity capital of MCX as prescribed under the guidelines issued by the Government of India (GoI) for capital structure of commodity exchanges post 5-years of operation.
The FMC order of 17 December also stated that Mr. Jignesh Shah, Ex- Director, Mr. Joseph Massey, Ex-Director and Mr. Shreekant Javalgekar, Ex-Managing Director & CEO of MCX, are not 'fit and proper person' in terms of the directions issued under the Board Composition Guidelines issued by the Commission and as amended from time to time.
On 5 March 2014, Merrill Lynch Capital Markets Espana bought 2.35 lakh shares, or 0.51% equity, in FTIL. The shares were purchased on NSE at an average price of Rs 347.76. On 6 March 2014, Merrill Lynch Capital Markets Espana bought another 2.64 lakh shares, or 0.57% equity, of FTIL. The shares were purchased on NSE at an average price of Rs 370.07, valuing the transaction at Rs 9.77 crore. After both the transactions, Merrill Lynch Capital Markets Espana holds 4.99 lakh shares, or 1.08% equity, in FTIL.
FTIL's net profit rose 27.6% to Rs 34.48 crore on 10.97% decline in net sales to Rs 79.97 crore in Q3 December 2013 over Q2 September 2013.
FTIL is among the global leaders in offering technology IP (Intellectual Property) and domain expertise to create and trade on next generation financial markets.
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