FTIL slumps after deferring board meet

Financial Technologies (India) hit a lower circuit limit of 5% at Rs 285.70 at 14:49 IST on BSE after the company postponed its decision for divesting 24% stake in MCX to 10 May 2014, as bidders did not submit binding bids.

Shares of MCX were down 3.18% to Rs 526.40 on BSE. Financial Technologies India (FTIL) made the announcement after market hours on Friday, 2 May 2014.

Meanwhile, the BSE Sensex was up 77.01 points, or 0.34%, to 22,480.90.

On BSE, so far 1.36 lakh FTIL shares were traded in the counter, compared with an average volume of 4.72 lakh shares in the past one quarter.

The stock hit a high of Rs 302 and a low of Rs 285.70 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 underperformed the market over the past one month till 2 May 2014, falling 16.47% compared with the Sensex's 0.65% decline. The scrip had, however, outperformed the market in past one quarter, rising 10.13% as against Sensex's 9.21% rise.

The small-cap company has an equity capital of Rs 9.22 crore. Face value per share is Rs 2.

The board of FTIL met on Friday, 2 May 2014, and took note on the progress on the divestment of 24% stake in MCX, since the last board meeting held on 25 April 2014. The board was to deliberate on the final bidder at the Friday's board meeting.

However, in the light of developments of MCX releasing executive summary of the Report of special audit conducted by PricewaterhouseCoopers (PwC), some of the bidders have requested for the full report and also further information about MCX. Their request has been sent to MCX by FTIL's merchant bankers. In view of this, the bidders have not submitted the binding bids.

Accordingly, the FTIL board has decided to meet again on 10 May 2014 to review the progress on the divestment of 24% stake in MCX.

Following Rs 5500-crore payment crisis at group company NSEL, commodity market regulator Forward Markets Commission (FMC) in December declared that FTIL was "not fit and proper" to hold more than 2% stake in Multi Commodity Exchange (MCX). It asked paring of FTIL's stake to 2% from the current 26%.

PwC reportedly carried out an audit report on MCX on instructions given by the commodity market regulator.

According to media reports, PwC's audit report suggests that MCX had entered into agreements with related trading parties and paid about Rs 709 crore and group firms without following proper documentation process.

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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