Mumbai: Financial Technologies (India), or FTIL, on Sunday announced that it has entered into a share purchase agreement (SPA) to sell its 15 per cent stake in MCX to Kotak Mahindra Bank for Rs 459 crore.
FTIL, which has to bring down its stake to 2 per cent in MCX following the order from the regulator Forward Market Commission (FMC), had offloaded 4 per cent stake in the commodity exchange on July 16.
In December, FMC had declared FTIL, the parent of MCX, as unfit to run any exchange after a Rs 5,600-crore payment crisis at group company National Spot Exchange (NSEL).
The regulator asked FTIL to reduce its stake in MCX to 2 per cent from 26 per cent.
"Subject to certain conditions to be fulfilled, including regulatory approvals prior to closing of the transaction, FTIL has entered into a share purchase agreement (SPA) to sell 15 per cent stake in MCX to Kotak Mahindra Bank for a total consideration of Rs 459 crore," FTIL said in a statement.
FTIL had committed to divesting its stake in MCX. This transaction culminates the majority of the divestment process initiated on February 27, it added.
Commenting on the development, FTIL non-executive chairman Venkat Chary, said, "We are happy that Kotak Mahindra Bank will become a significant minority shareholder in MCX and will contribute towards the next phase of growth of MCX as a responsible public shareholder."
Chary said FTIL was "satisfied that we could divest to Kotak Mahindra Bank" and will continue to remain a technology partner to MCX. FTIL had appointed a restructuring committee to oversee the process, which appointed JM Financials as its investment banker and Ican as adviser.
Despite many challenges since the initiation of the divestment process, FTIL was successful in generating and negotiating a binding offer from one of India's largest private sector banks, endorsing the credentials of a strong world-class institution promoted by FTIL, the company said.