Blackstone discloses investment in Financial Tech, ups holding to 6.1%

Private equity giant Blackstone has raised its holding in public listed transactions-related technology provider Financial Technologies (India) Ltd to 6.1 per cent by acquiring an additional 1.14 per cent stake last week through open market transactions. For Blackstone, this is one of the rare India investment transactions involving public market share purchase.

The PE firm, through its entity Blackstone GPV Capital Partners Mauritius VI FII Ltd, raised its holding from 4.96 per cent by acquiring additional shares worth Rs 47.63 crore or $8.6 million.

The buyout major did not figure among prominent institutional shareholders of Financial Technologies as of June 30, which means it has invested in the firm since July. Given the share price movement, it is estimated to have spent around Rs 220 crore or around $40 million to buy the shares of the firm till date.

Financial Technologies’ scrip has risen around 20 per cent since July 1 and last traded at Rs 904.5 a share, down 0.65 per cent in a strong Mumbai market on Monday. The share price has shot up 75 per cent since last December.

Founded in 1998, Financial Technologies offers transaction automation, technology and networking solutions. The firm’s transaction automation division caters to exchanges, brokers, banks, financial institutions and asset management companies, while the technology solutions division offers services including domain consulting, technology licensing and development outsourcing. The company is the promoter of MCX, among other exchanges.

In early 2011, Citi Venture Capital International Growth Fund II, a fund managed by Citi Venture Capital International, invested an undisclosed amount in Financial Technologies and raised its stake thereafter. It held 4.3 per cent stake as of June 30, 2012.

The latest transaction makes Blackstone the single largest institutional investor in Financial Technologies.

For Blackstone, this is the second back-to-back deal in India. Last month, the firm put in $43.5 million in SH Kelkar in a fresh transaction in India after almost a year’s hiatus.

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