FTIL stock rebounds after initial hiccup; m-cap up Rs 47 crore

Mumbai: Shares of Financial Technologies slumped to their lowest trading permissible limit for the day but rebounded to settle with gains of over 6 percent, adding nearly Rs 47 crore to its market capitalisation.

The government on Tuesday decided to merge crisis-ridden National Spot Exchange Ltd (NSEL) with holding group FTIL.

Following this, shares of FTIL went into a tailspin and slumped 20 percent to Rs 135.75 -- its lowest trading permissible limit for the day -- on the BSE.

The stock later gained lost ground and settled for the day at Rs 179.90 on the BSE, up 6.04 percent.
Accordingly, the market capitalisation of the company improved by Rs 47 crore to Rs 828.95 crore at the end of today's trading session.

NSEL, which has been facing payment crisis, is promoted by Jignesh Shah-led Financial Technologies (India) Ltd.

Issuing a draft order for the proposed merger, the government today said the move has been decided upon in "public interest".

"The central government has decided on the merger of NSEL with its holding company FTIL, in public interest under Section 396 of the Companies Act, 1956," the Corporate Affairs Ministry said in a statement.

"In the face of a fraud of such a magnitude involving settlement crises of Rs 5,600 crore owed to over 13,000 investors on the trading platforms of NSEL, FTIL cannot seek to take refuge behind the corporate so as to unjustifiably isolate itself from the fraudulent actions that took place at NSEL resulting in such a huge payment crisis," the order said.