Major mergers and acquisitions have been few and far between
in the recent past in India. Rebecca Abraham reports
on a sale by a troubled company where legal counsel
were required to go the extra mile
Financial Technologies (India) (FTIL), a listed company that has been in the spotlight over the past 10 months for all the wrong reasons, was riding high in 2010. That year it launched three exchanges outside India: the Singapore Mercantile Exchange; the Mauritius Global Board of Trade (subsequently renamed Bourse Africa); and the Bahrain Financial Exchange. FTIL, which was set up in the 1990s as a technology provider for stock markets, was to have 100% stakes in all three exchanges.
Reports by FTIL in 2010 state that its domestic ventures – which include Multi Commodity Exchange of India (MCX), in which FTIL had a 26% shareholding, and National Spot Exchange (NSEL), a wholly owned company that provided an online platform for trading in agricultural commodities – were also achieving steady growth. Similarly all was well at its “ecosystem ventures” such as National Bulk Handling Corporation (NBHC), its warehousing subsidiary, and at Atom, a payment services provider.
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