Financial Technologies (India) Limited (FTIL) has completed the sale of 15% equity stake in Multi Commodity Exchange of India Ltd (MCX) to Kotak Mahindra Bank Ltd (KMBL), for a consideration of Rs 459 crore.  With this, FTIL’s shareholding in MCX is nil. FTIL concluded a long-term 10-year technology contract with MCX for providing software support and managed services on mutually agreed terms and conditions and further renewal as may be mutually agreed upon.

Over the decade, MCX, promoted by FTIL, competed with four other exchanges in India to emerge as the world’s 3rd largest Exchange. MCX put India on the global map by becoming world no. 1 in gold and silver, world no. 2 in natural gas and world no. 3 in crude oil. The Exchange brought efficient price discovery and risk management mechanism through hedging for India. According to Tata Institute of Social Sciences (TISS), in 10 years, FTIL-promoted MCX created direct and indirect employment for over one million people.

Commenting on the deal, Anil Singhvi, Chairman, Ican Investment Advisors said, "FTIL has built many world class financial institutions such as MCX, SMX, IEX and NBHC. The Singapore Mercantile Exchange (SMX) was acquired by the world’s leading Exchange group, Intercontinental Exchange Group Inc. (ICE), while NBHC, the warehousing and collateral management company was acquired by one of the India’s oldest and leading Private Equity  – IVF (India Value Fund) and the recent MCX’s acquisition by Kotak Mahindra Bank is a testimony to FTIL’s capability to build such world class institutions in challenging environment and attract blue chip investors and corporate houses for their stake sale against all odds.”

JM Financial, were the investment bankers for the deal, speaking on behalf of the firm, Nimesh Kampani, Chairman, JM Financial Group, said, "We are happy the deal was concluded in a record period of time. The entire process was undertaken transparently through a Board appointed committee."

Jignesh Shah, MD & CEO, FTIL, said, "I would like to congratulate Kotak Mahindra Bank on successful completion of the transaction. I am confident that Kotak Mahindra Group will contribute as significant minority shareholders towards the growth of the Exchange. We look forward to a constructive partnership with MCX as their technology partner.”