FTIL to sell balance 0.37% stake in IEX to Madison India

Financial Technologies (India) Ltd has agreed to sell its remaining 0.37 per cent stake in Indian Energy Exchange Ltd (IEX) to a fund run by investment firm Madison India, completing its exit from the country's biggest power trading bourse.

The company will sell the stake to Madison India Opportunities III for about Rs 8 crore, according to a stock market disclosure. The transaction is subject to certain conditions.

FTIL had been selling its stake in IEX in tranches to comply with a regulatory order after the company and its promoter Jignesh Shah were declared unfit to hold a stake in any stock exchange or clearing corporation. FTIL landed in trouble after its subsidiary National Spot Exchange Ltd was embroiled in a Rs 5,600-crore fraud.

Last month, the company had entered into an agreement with Madison India to sell a 1.58 per cent stake in IEX for Rs 33.96 crore. With the latest tranche, Madison India Opportunities III will hold a 1.95 per cent stake on fully diluted basis in IEX.

Earlier this week, FTIL sold a 3.63 per cent stake in IEX for about Rs 100 crore to SG BRIC III Trading LLC and Siguler Guff NJDM Investment Holdings.

Last month, FTIL sold a 5.46 per cent stake in IEX to a subsidiary of agri-processing equipment maker Milltec Machinery Pvt Ltd.

In September, the company tweaked an agreement it had signed in June to divest bulk of its remaining stake in IEX to a clutch of investors. It said it would sell a 19.06 per cent stake in IEX for Rs 410 crore (about $62 million) to the same buyers instead of 16.6 per cent as agreed earlier.

FTIL had signed a deal in November last year to sell its entire holding to a group of investors led by private equity firm TVS Capital for Rs 576.84 crore ($94 million), valuing IEX at Rs 2,250 crore ($366 million then).

However, the agreement got terminated due to non-fulfillment of certain conditions and a notice was issued to the firm by the Economic Offences Wing of Mumbai in February stipulating not to divest its assets.

Earlier last month, TVS Capital picked up a small stake in IEX in its first new deal in almost a year after a previously announced transaction to invest in the electricity trading platform was scrapped. It bought the stake from existing investor Bessemer Venture Partners.

IEX offers an online electricity trading platform for trading, clearing and settlement operations. As per its site, over 800 private generators and more than 2,800 open access consumers are using the platform to manage their power portfolios.

It also counts several other private equity and venture capital investors including Multiples PE and Lightspeed Venture Partners.

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