Financial Technologies gains over 3% on exiting IEX

MUMBAI: Shares of Financial Technologies (FTIL) gained over 3 per cent after Jignesh Shah led company willfully exited Indian Energy Exchange (IEX) by selling its entire 25 per cent stake to a clutch of investors, including TVS Shriram Growth Fund.

The stake sale is likely to fetch a little over 570 crores.

FTIL said the company had entered into a share purchase agreement with TVS Shriram Growth Fund 1, Kris S Gopalakrishnan, Lakshmi Narayanan, Rajeev Gupta, Dalmia Cement Bharat Power Ventures, Kiran Vyapar Ltd, TVS Capital Funds and Agri Power and Engineering Solutions for stake sale.

The Central Electricity Regulatory Commission had ordered FTIL to sell its stake after it was declared not ‘fit and proper’ to hold stakes in exchanges.

“The said transaction is subject to fulfillment of certain condition precedents including buyout of the application software and other technology for its own use only by IEX and regulatory approvals, if any. As per the SPA, the transaction will close within 30 days, unless extended by all the parties,” FTIL said in a filing to stock exchanges.

At 09:50 a.m.; the stock was at Rs 184.10, up 2.51 per cent, on the BSE. It gained 3.59 per cent to touch a high of Rs 186.05 intraday.