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63 Moons Technologies Ltd.

BSE: 526881 Sector: IT
NSE: 63MOONS ISIN Code: INE111B01023
BSE 00:00 | 24 Apr 2020 63 Moons Technologies Ltd
NSE 05:30 | 01 Jan 1970 63 Moons Technologies Ltd

Updates - Clarification Divestment of equity shares of Multi Commodity Exchange of India Limited (MC

August 5, 2014, 11:13 am | Source: BSE

In response to the Exchange query dated July 21, 2014, the Company has vide its email dated August 05, 2014 replied as under :

We refer to your email below on the captioned subject. We reiterate that we are fully compliant with all disclosure requirements and had therefore asked for a specific basis on which the BSE is asking this query. Clause 4(a) of the circular dated November 18, 2011 referred to by you deals with the consequences of non-compliance but you have not disclosed which provision of the listing agreement the BSE is relying on to ask for an analysis of the sort you have asked.

In any case, without prejudice to the position above, we wish to point out that the price per share for the sale of our stake in MCX Ltd. is Rs. 600/- and not Rs. 664/- as mentioned in your e-mail. This is a fair price and the price that has been arrived at after detailed negotiations and a transparent bidding process was adopted. You may be interested to know that the BSE as a corporate body was also interested in purchasing these shares. There are multiple considerations and reasons on which this price offered by the Kotak Group, an institutional financial group is appropriate and advantageous to FTIL shareholders. It may also be noted that the 90-day average price for MCX shares was around Rs. 593 per share. As you are also aware, FTIL has challenged the finding of the Forward Markets Commission that it is not fit and proper, and this sale was without prejudice to this contention. There has been an inherent urgency and coerciveness in the sale of these shares, which has also been underlined by the fact that in the hands of FTIL, these shares do not have any voting rights until the proceedings are resolved.

Many such factors have been taken in to account by the Board of FTIL, including the future business needs of FTIL, the price offered by competitive bidders (including that of BSE) etc. The fact that the price of FTIL has gone up almost 25% post the announcement in three days and share price of MCX increased by more than 15% next day vouch for the positive reaction of the market to the deal - and this price factors in the future value of FTIL under the ownership of a new substantial shareholder.

Considering the challenges faced by FTIL and to ensure value protection for all shareholders, the transaction was executed in the best interests of shareholders of FTIL.

We trust that is responsive to your query