Financial Technologies India (FTIL) has sold a 5% stake in its newly promoted Multi Commodity Stock Exchange (MCX-SX) for Rs 250 crore to IFCI, a state-run non-banking finance company (NBFC). The stake has been sold in a secondary deal at Rs 35 per share, valuing MCX-SX at Rs 5,000 crore. The exchange presently offers currency futures contract and started operations from October, 2008.
MCX-SX is the new national level stock exchange, and is recognised under section 4 of Securities Contract (Regulation) Act, 1956 by SEBI. The firm was also earlier reported to be in talks with foreign exchanges like London Stock Exchange for a stake sale.
The exchange started its first round of divestments last month in order to meet the regulatory requirements.
MCX-SX, a subsidiary of India’s largest commodity exchange Multi Commodity Exchange of India (MCX), sold a 6.48% stake to Union Bank of India and Bank of India for Rs 87.5 crore last month. The banks have picked up shares through a primary offering at Rs 10 per share, valuing the exchange that time at Rs 1,390 crore.
MCX-SX is one of the India’s largest currency futures exchange with over 575 (SEBI registered) members including 17 banks. They have presence in over 451 cities and towns in India.
After the IFCI deal, the valuation of MCX-SX is much higher than that of Bombay Stock Exchange (BSE), which is the oldest exchange in the country. The 133-year-old exchange was valued at around Rs 4,300 crore in recent stake sale, according to reports, as compared to the Rs
5,000 crore valuation of MCX-SX.
On the other hand National Stock Exchange (NSE), which has two times the trading volume of BSE, was recently valued at $2.5 billion in its deal with Norwest Venture Partners.