FTIL to fully exit IEX by Rs 576.84 crore stake sale to TVS Capital, others

Financial Technologies on Wednesday said it would fully exit IEX by selling its entire stake to a clutch of investors, including TVS Shriram Growth Fund, 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," the company said in a statement.

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.

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

FTIL will completely exit IEX post completion of the transaction, the company said.