SKS Capital has backed out of MCX-SX stake buy: FTIL

Financial Technologies on Wednesday said SKS Capital has backed out from acquiring some of its stake in MCX-SX even as other investors, including Rakesh Jhunjhunwala, have completed purchase of shares in the stock exchange.

Last month, Financial Technologies (India) Ltd (FTIL) announced signing pacts with a clutch of entities, including ace investor Jhunjhunwala and financial major Edelweiss, to sell its entire 5 per cent stake in MCX-SX for Rs 88.41 crore. Giving an update on the deal, FTIL in a regulatory filing said one of the investor — SKS Capital & Research Pvt Ltd — has expressed its inability to purchase the warrants and accordingly both the parties agreed to terminate the agreement. Over 2.71 crore shares of the stock exchange have been transferred to Jhunjhunwala while 38.48 crore warrants have been given to investors, who have converted them into equity shares. For both, consideration have been received, the filing said.

"One of the investor, Uday Shah has agreed to purchase additional 50,00,000 warrants, accordingly the amendment to Warrant Purchase Agreement (WPA) has entered into between the parties subject to other terms and conditions of WPA will remain same," it noted. Further, FTIL said the balance 17,26,60,000 warrants would be moved to escrow agent in terms of WPA and later transferred to the investors.