Even as the MCX-SX has appealed to the high court against SEBI order barring it from trading in equities, its parent firm Financial Technolgies Ltd has sold a little less than 1% stake in the largest
equity exchange in India. Financial Technologies informed the bourses that it has sold 440,000 shares of rival National Stock Exchange, which controls around 94% of the equities market, at Rs 3,800 per share. The deal would have fetched Jignesh Shah-promoted Financial Technologies Rs 168.72 crore, though the buyer could not be ascertained.
MCX-SX said it filed a writ petition against SEBI's ruling barring it to start equity trading in Bombay High Court. MCX-SX, which plans to become a full-fledged stock exchange, filed the petition against SEBI's 23 September order. This order said that MCX-SX had violated shareholding norms and its promoters lacked honesty. The entry of MCX-SX, whose promoter Financial Technologies owns India’s largest commodity bourse, would have challeneged NSE dominant position in the equity markets.
MCX-SX is backed by MCX and group firm Financial Technolgies, both of whom hold a 5% stake each in the bourse. SEBI had asked that both companies together hold a 5% as per norms.
With the current exit, Financial Technologies shareholding in NSE falls to 10,000 shares. The firm acquired the shares at Rs 2,778 per share, which could mean the deal giving a profit of 36%. NSE also had a stake in MCX as per its DRHP filed in 2008. The bourse held a 2.56% stake in MCX.
This transaction could value the bourse at around Rs 17,100 crore, which would mean an appreciation of more than 43% since June last year. Venture and growth capital investor Norwest Venture Partners had picked up a 2.11% stake in NSE for Rs 2650 per share, valuing the exchange at Rs 11,925 crore. Singapore soveriegn wealth fund Temasek also picked a 5% stake in NSE from NYSE for $175 million, valuing the exchange at $3.5 billion in May this year.