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India's FTIL to sell commodity handling unit for INR242 crore amid fraud investigations

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March 15
6:46 PM 2014

Financial Technologies (FTIL) announced that it will sell its commodity handling unit National Bulk Handling Corp (NBHC). The exit deal is valued at INR241.74 crore, according to Money Control.

The company said in a filing: "Financial Technologies and all other shareholders of NBHC have entered into a share purchase agreement for sale of 100 percent equity ownership in NBHC, a subsidiary of the company, to IVF Trustee Company, the sole trustee of India Value Fund IV for a total consideration of Rs 241.74 crore."

The sale is expected to be closed anytime between April 15 and April 30 pending shareholders approval, the report added.

FTIL, a company that operates several exchanges in India including MCX and MCX-SX, is also under investigation for fraud allegations, the report stated.

According to Times of India, FTIL main promoter Jignesh Shah was invited for a preliminary inquiry by the Central Bureau of Investigation (CBI). This is connected to allegations that he participated in the defrauding of state-run firms of INR120 crore by NSEL. Consequently, MCX stocks went down 4.5% to INR493 and FTIL stock plunged 4.5% to INR361, the report detailed.

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