FTIL rallies on stake sale reports in Indian Energy Exchange

NEW DELHI: Financial Technologies India Ltd ( FTIL) rallied over 9 per cent in today's trade on reports that the company is planning to sell its entire 24.89% stake in power-trading platform IEX.

According to an ET report, Financial Technologies India Ltd plans to sell its entire 24.89% stake in power-trading platform Indian Energy Exchange (IEX) and has appointed Axis Capital to look for a buyer, two people with direct knowledge of the matter said.

Based on a recent deal in IEX stake Aditya Birla Private Equity purchased 8% of IEX from IDFC private equity fund for Rs 136 crore the shares that FTIL wants to sell could fetch about Rs 423 crore, the report said.

There could be strong demand from both private-equity and strategic investors to purchase IEX stake as the nation’s power sector is expected to turn around soon, with many buyers preferring to buy electricity on the exchange instead of entering into long-term purchase agreement with producers.

Only 3% of such purchases are executed through exchanges now. In fact, volumes on the exchange have been rising on expectation that the new government would push reforms to help companies build power plants and facilitate access to coal after delays in various regulatory clearances, the report added.