This Article is From Nov 06, 2014

Financial Tech in Pact to Exit IEX by Selling Stake for Rs 576 Crore

New Delhi: Financial Technologies India Ltd (FTIL) said on Wednesday that it will fully exit IEX by selling its entire stake to a clutch of investors for Rs 576.84 crore.

"FTIL today, entered into a Share Purchase Agreement (SPA) with TVS Shriram Growth Fund 1, S. Gopalkrishnan, Lakshmi Narayanan, Rajeev Gupta, Dalmia Cement Bharat Power Ventures Limited, Kiran Vyapar Limited, TVS Capital Funds Limited, and Agri Power and Engineering Solutions Private Limited for sale of 25.64 per cent equity stake on a fully diluted basis in IEX for an aggregate consideration of Rs. 576.84 crore," a company statement said.

In the wake of a Rs 5,600-crore payment scam at National Spot Exchange Ltd (NSEL), the Central Electricity Regulatory Commission (CERC) had directed Jigesh Shah-led FTIL to completely exit from IEX, the country's leading power exchange with an over 95 per cent market share.

NSEL is a group firm of Financial Technologies.

The transaction is subject to fulfillment of certain condition precedents including buyout of the application software and other technology for its own use only by IEX and regulatory approvals, if any, the statement added.

After completion of the transaction, FTIL said it would have completely exited IEX.