A day after selling its stake in Indian Energy Exchange, Financial Technologies India Ltd has decided to spin off its automated trading software Odin (Open Dealer Integrated Network) into a separate business unit before eventually selling it.

FTIL plans to appoint an investment banker to scout for a majority strategic partner in the new business unit, a company statement said. The software, believed to be used by 70 per cent of dealers across trading platforms, facilitates auto-execution of trades based on a particular strategy. With close to one million licencees, Odin is used in over 600 cities and villages.

Having sold off its stake in MCX and IEX, the software company will exit from the exchange-related business completely once it finds a suitor for Odin. The FTIL board, which met here on Friday, reiterated its support to resolving the issue over trade default of ₹5,600 crore on National Spot Exchange. Commodities market regulator the Forward Markets Commission has recommended the merger of NSEL with FTIL to resolve the crisis speedily.

An analyst, on condition of anonymity, said the decision to hive off the cash cow software business would negate the proposal to merge scam-ridden NSEL with FTIL. “The software company will protect cash flows while leaving very little to repay the distressed investor if there is a claim on FTIL,” he added. Financial Technologies plans to develop a software that will power the fast-growing e-retailing ventures India.

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