The Dubai Multi Commodities Centre (DMCC) has bought an additional 1 per cent stake in the Dubai Gold and Commodities Exchange (DGCX) from its partner, the Financial Technologies Group, for $12.5 million.

The deal values DGCX, which started operations one and a half years ago, at a whopping $1.25 billion.

The FT Group will now be left with a 49 per cent stake in DGCX. When contacted, FT Group executives declined comment on whether the price paid for the 1 per cent stake reflected change of control and therefore included a control premium.

Market sources say the high valuation for a start-up like DGCX compares well with the valuations of the National Stock Exchange and the Bombay Stock Exchange at $2.3 billion and $910 million, respectively.

DGCX is an electronic futures and options exchange which utilises trading, clearing and settlement technology developed by the FT Group.

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.

Commenting on the transaction after it was signed today in Dubai, Jignesh Shah, founder and CEO of the FT Group, said DGCX has proven to be a successful venture and DMCC -- a government of Dubai authority -- is the appropriate venture partner to hold the majority interest in the exchange.

The Financial Technologies stock closed at Rs 1,796.75 on the NSE, against yesterday's 1,795.85.

David Rutledge, CEO of DMCC, said this transaction testifies to DMCC's total confidence in, and commitment to, DGCX.

"The FT Group technology, as the 'engine room' of DGCX, has been a cornerstone of its success to date and will continue to underpin its growth," he said.

The FT Group remains fully committed to ensuring that DGCX achieves its potential role amongst the world's leading commodity exchanges, he said.