FTIL shares settle 2% higher on deal to sell SMX stake
Paring sharp initial gains, shares of Financial Technologies (India) Ltd today settled 2 per cent higher in-line with a sluggish stock market.
By PTI | Updated:
MUMBAI: Paring sharp initial gains, shares of Financial Technologies (India) Ltd today settled 2 per cent higher in-line with a sluggish stock market after the company announced sale of its Singapore-based bourse SMX for USD 150 million (Rs 931 crore) to InterContinentalExchange.
After surging 11 per cent to Rs 201.40 in intra-day trade, FTIL's scrip finally ended the day at Rs 185.05, up 2.07 per cent at the BSE.
On the NSE, the stock settled 1.41 per cent higher at Rs 183.60.
FTIL, the main holding firm for Jignesh Shah-led group that has also set up Indian exchanges like commodity bourse MCX, stock exchange MCX-SX and now crisis-hit NSEL (National Spot Exchange), held its stake in SMX through a wholly owned subsidiary Financial Technologies Singapore Pte Ltd (FTSPL).
In a regulatory filing to Indian stock exchanges where FTIL is listed, the company said FTSPL has reached an agreement to sell 100 per cent of its equity ownership in SMX (together with its wholly owned subsidiary SMX CC) to ICE Singapore Holdings, an entity owned by US-based ICE group for USD 150 million.
The transaction was approved by the Board of Directors of FTSPL and FTIL yesterday with signing of definitive agreements and is subject to certain customary closing conditions and approvals, the company said.
FTIL will primarily utilise the proceeds towards repayment of outstanding debt towards External Commercial Borrowings (ECB) and Foreign Currency Loan (FCL) to banks subject to regulatory approvals, if any, pursuant to which FTIL will become debt/lien-free, it said.
Meanwhile in the stock market, the BSE benchmark Sensex ended the day at 20,890.82, up 40.08 points.
After surging 11 per cent to Rs 201.40 in intra-day trade, FTIL's scrip finally ended the day at Rs 185.05, up 2.07 per cent at the BSE.
On the NSE, the stock settled 1.41 per cent higher at Rs 183.60.
FTIL, the main holding firm for Jignesh Shah-led group that has also set up Indian exchanges like commodity bourse MCX, stock exchange MCX-SX and now crisis-hit NSEL (National Spot Exchange), held its stake in SMX through a wholly owned subsidiary Financial Technologies Singapore Pte Ltd (FTSPL).
In a regulatory filing to Indian stock exchanges where FTIL is listed, the company said FTSPL has reached an agreement to sell 100 per cent of its equity ownership in SMX (together with its wholly owned subsidiary SMX CC) to ICE Singapore Holdings, an entity owned by US-based ICE group for USD 150 million.
The transaction was approved by the Board of Directors of FTSPL and FTIL yesterday with signing of definitive agreements and is subject to certain customary closing conditions and approvals, the company said.
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FTIL will primarily utilise the proceeds towards repayment of outstanding debt towards External Commercial Borrowings (ECB) and Foreign Currency Loan (FCL) to banks subject to regulatory approvals, if any, pursuant to which FTIL will become debt/lien-free, it said.
Meanwhile in the stock market, the BSE benchmark Sensex ended the day at 20,890.82, up 40.08 points.
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