Financial Tech sells warehousing arm for Rs 242 cr

Entire equity bought by IVF Trustee Co; Jignesh Shah grilled for a second day by CBI in NSEL probe

Financial Technologies (FTIL), promoter of crisis- spot National Spot Exchnage Ltd (NSEL), has sold one more business. On Friday, it announced the sale of National Bulk Handling Corporation, its warehousing subsidiary, for Rs 241.7 crore.

Jignesh Shah

The sale, it said, was to IVF Trustee Company Pvt Ltd, sole trustee of India Value Fund-IV, likely to be completed during the second half of April, subject to FTIL shareholders’ approval by way of postal ballot.

FTIL sold its Singapore Mercantile Exchange for $150 million (Rs 930 crore) to major US exchange IEX a few months earlier. The company has already announced it would be selling its exchange ventures, including all but two per cent of its 26 per cent stake in Multi Commodity Exchange (MCX).

The announcement came when FTIL group chief and promoter Jignesh Shah was being questioned by the Central Bureau of Investigation for a second day. On Thursday, CBI had registered a First Information Report against NSEL and its promoters, naming Shah and some officials of Project Equipment Corporation. The latter corporation had money invested through NSEL, which it hasn’t got back, subsequent to the massive default on the latter platform.

Shah was questioned by CBI till late night on Thursday; on Friday, he was being interrogated since evening.

FTIL share prices fell on Friday by 4.5 per cent to close at Rs 360.95 on the BSE. The MCX share fell 4.5 per cent to close at Rs 492.65.