FTI sells stake in Indian commodity exchange MCX to fund expansion plans

FTI sells stake in Indian commodity exchange MCX to fund expansion plans

Financial Technologies India (FTI), which controls India's largest commodity exchange MCX, has sold 10% of the exchange to Citigroup and Merrill Lynch, with a further agreement to sell 5% to the GLG Financials Fund and Passport India Investment.

Merrill and Citi have each bought a 5% stake, the GLG Financials Fund will take 3%, and Passport India Investment 2%. The investment values the bourse at up to $1.1 billion.

In a filing to the Bombay Stock Exchange on Friday, the provider of exchange, brokerage, and messaging technology and services, says it intends to invest the proceeds "in organic and other growth opportunities including green field exchanges and ecosystem infrastructure ventures such as NSEL (National Spot Exchange Ltd) and NBHC (National Bulk Handling Corporation Ltd) among others, in local and global markets."

In mid-September, FTI received an approval from the Central Electricity Regulatory Commission to set up India's first national level power exchange - Indian Energy Exchange Ltd (IEX) for trading electricity.

To further fund its exchange expansion plans, the company today informed BSE that it will raise upto US$100 million plus a Green Shoe Option of upto $15 million through issue of Global Depository Receipts (GDRs) to overseas investors.

It says this money will be used for global M & A opportunities in exchange as well as technology space and investment in organic & inorganic global domain - centric businesses.

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