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.
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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.
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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.
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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.
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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.
