Financial Technologies has entered into an agreement to sell its entire stake and warrants in MCX Stock Exchange for ₹88 crore.
The company said it has inked an agreement with Rakesh Jhunjhunwala to sell 2,70,00,000 equity shares constituting 4.99 per cent of the equity capital of the exchange.
Financial Technologies has also signed a separate pact with a group of 12 individuals and companies to offload 56,24,60,000 warrants.
With the current deal, Financial Technologies, which was declared “not fit to hold stake in exchanges” has divested its entire investment in the exchange business.
The transaction is subject to fulfilment of certain conditions, including regulatory approvals, said FTIL in a statement. Post completion of the transaction, the company would have completely exited MCX-SX, it added.
In August, MCX-SX had said it has extinguished warrants held by Financial Technologies and transferred ₹56.25 crore non-refundable interest-free deposit issued against the warrants to the capital reserve.
Net worth to rise The development will increase the exchange's net-worth to ₹160 crore from ₹110 crore and help meet SEBI minimum worth criterion of ₹100 crore, it said.
The decision to cancel the warrants was taken by the board after getting a legal opinion on the SEBI order dated March 19 and Securities Appellate Tribunal order dated July 9 regarding the warrants held by Financial Technologies, MCX-SX had said.