Financial Technologies surges

Financial Technologies surges

Financial Technologies India rose 3.45% to Rs 2165 at 12:10 IST on BSE after NYSE Euronext agreed to buy a 5% stake for $55 million in Multi Commodity Exchange.

Meanwhile the BSE Sensex was down 86.81 points or 0.49% to 17,679.82 on weak cues from the global markets. US stocks dropped on Thursday, 14 February 2008, as the credit crunch surfaced unexpectedly in the municipal bond market and after the Federal Reserve Chairman Ben Bernanke said that he sees sluggish economic growth ahead.

On BSE, 7,061 shares were traded in the counter. The scrip had an average daily volume of 37,614 shares in the past one quarter.

Shares of the mid-cap IT firm hit a high of Rs 2175 and a low of Rs 2055 so far during the day. The stock had touched a 52 week high of Rs 3,048 on 29 June 2007 and a 52 week low of Rs 1509.10 on 26 October 2007.

Financial Technologies India had outperformed the market over the past one month till 14 February 2008, declining 11.92% compared to the Sensex’s decline of 10.58%. However, it underperformed the market in the past one quarter, declining 15.49% compared to Sensex’s fall of 9.81%.

The company’s current equity is Rs 9.18 crore. Face value per share is Rs 2.

The current price of Rs 2165 discounts Q3 December 2007 annualised EPS of Rs 469.46 by a PE multiple of 4.61.

MCX is the world’s third biggest gold bourse and accounts for more than four-fifths of gold futures traded in India. The exchange currently offers futures trading in 56 commodities and is a leader in commodity derivatives with a total daily average turnover of $3.5 billion.

Meanwhile, as per reports earlier this month, Financial Technologies India (FTIL), is in the process of filing a revised draft red herring prospectus (DRHP) in the second fortnight of February to dilute another 5.5% stake in the Multi Commodity Exchange (MCX) through an initial public offering (IPO). The proposed IPO would be the country’s first public issue by any exchange. The IPO size is speculated to be in a range of Rs 500 crore to Rs 600 crore. MCX had earlier filed papers with Securities and Exchange Board of India (Sebi) in March 2006.

FTIL is the promoter of MCX and holds 37.45% stake. The promoter plans to dilute its stake to 32% after the IPO.

On 28 September 2007, Financial Technologies India announced that Merrill Lynch and Citigroup had acquired a 5% stake each in Multi Commodity Exchange of India (MCX). The company has also signed definitive agreements to sell a 3% stake in MCX to Passport India Investment (Mauritius) and another 2% to GLG Financials Fund. The transaction valued MCX at $1 billion to $1.1 billion, the company said in a statement.

Financial Technologies' posted 1422.40% spurt in net profit to Rs 536.95 crore on 31.50% rise in sales to Rs 679.79 crore in Q3 December 2007 over Q3 December 2006. The net profit was boosted by 1165% spurt in other income to Rs 719.17 crore in Q3 December 2007 over Q3 December 2006.

Financial Technologies develops software solutions used in online trading terminals. Multi Commodity Exchange of India (MCX), IBS Forex and Tickerplant Infovending are the subsidiaries of the company.