FTIL signs new pact to sell 16.6% stake in IEX for R357 crore

New Delhi, June 19: Financial Technologies India (FTIL) on Friday said it has entered into a new share purchase agreement with four companies to sell 16.6% stake in Indian Energy Exchange(IEX)forR357.06crore.

The earlier agreement that was signed on November 5, 2014 "stands terminated" and the new agreement will be closed within 60 days, subject to certain technology-related conditions and regulatory approvals, it said in a BSE filing.

FTIL is divesting its stake in IEX following the direction from regulator Central Electricity Regulatory Commission's (CERC) in May last year in the wake of the R5,600 crore payment scam at FTIL's group firm NSEL.

“We have entered into a new share purchase agreement with DCB Power ventures, Kiran Vyapar, Agri Power and Engineering Solutions, Aditya Birla Capital Advisors for sale of 16.6% stake for R357.06 crore," FTIL said in the filing.

The company and few purchasers would make efforts to sell the balance stake in IEX, which will be kept under escrow as per the terms of the new agreement, it added.

FTIL owns nearly 26% stake in the energy bourse.

In November, FTIL had signed a pact to sell its entire stake in IEX to a clutch of investors,includingTVSShriram

R5,600 Growth Fund, for R576.84 crore.

In the filing, FTIL said the earlier agreement stands terminated because of non-fulfilment of certain conditions and also due to the Economic Offences Wing (EOW)’s directive on February 28, 2015 restraining sale of FTIL assets.

FTIL has signed the new agreement after the Bombay High Court in its order dated June 12, 2015 stayed the EOW's letter on restraining sale of FTIL assets. FTIL will have to desposit before the court R84 crore from the sale of its stake in IEX within four weeks from the completion of the sale, the filing added.

The new pact has been signed "despite numerous challenges including among others to cancel the license of IEX as stated in CERC order, EOW letter-dated February 28, 2015 and in the interest of all stakeholders", FTIL added.

FTIL is divesting its stake in IEX following direction from CERC in May last year in the wake of the

cr payment scam at FTIL’s group firm NSEL