Financial Technologies sells 1% in Dubai commodity bourse for $12.5 mn

Indian IT company and MCX promoter Financial Technologies has sold a 1% stake in its Middle East-based venture, the Dubai Gold and Commodities Exchange (DGCX), to its partner, the Dubai Multi Commodities Centre (DMCC). The size of the deal is around $12.5 mn valuing the year-and-a-half old DGCX at $1.25 bn. Financial Technologies would now hold a 49% stake in DGCX.

DGCX is an electronic futures and options exchange which utilizes trading, clearing and settlement technology developed by Financial Technologies. The exchange lists futures contracts in gold, silver, currencies and fuel oil. It has recently announced the imminent launch of futures contracts in steel and options contracts on gold. DGCX has also foreshadowed the future listing of various agricultural, metal, and energy products.

Read the article in Business Standard.
Related Post:
MCX may divest stake to Dubai Multi Commodities Centre

MCX may divest stake to Dubai Multi Commodities Centre

The Dubai government-owned Dubai Multi Commodities Centre (DMCC) may buy stake in Multi Commodity Exchange (MCX). DMCC would initially pick up a minor ownership in the MCX and later increase it following MCX’s initial public offering (IPO).

MCX is planning an IPO to raise about Rs. 300 crores. US-based New York Mercantile Exchange was reportedly eying a 9% stake in MCX for about $60 mn. In early 2006, foreign institutional investor Fidelity International had picked up more than 9% in MCX for $49 mn. Currently, the major shareholders of MCX, other than its promoter Financial Technologies, are State Bank of India, NABARD, the National Stock Exchange, Union Bank, Canara Bank, Bank of India, Bank of Baroda, HDFC Bank and SBI Life Insurance.

DMCC, MCX and Financial Technologies had together set up the Dubai Gold and Commodity Exchange, which had commenced trading more than a year back. Recently, the New York Stock Exchange Group, General Atlantic, Goldman Sachs and Softbank Asian Infrastructure Fund bought 5% each in the National Stock Exchange (See Related Post).

Read more on this in DNA Money.