5paisa Capital locked at 5% lower circuit on debut but big difference in prices on BSE NSE

November 16
13:05 2017
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Shares of 5paisa Capital, the demerged entity from IIFL Holdings, listed with 5 percent discount to the price in pre-opening trade.

But there is vast difference in the price discovery on exchanges.

It debuted at Rs 380 on the National Stock Exchange, lower by 5 percent from pre-opening price of Rs 400 per share while on the BSE, it listed at Rs 617.50, a 5 percent discount to pre-opening price of Rs 650.

So the difference between these prices comes to Rs 237.5 per share and the same with their market capitalisation.

The market capitalisation on the BSE stood at Rs 786.63 crore and Rs 484.08 crore on the NSE.

5paisa Capital, a 100 percent subsidiary of IIFL, is engaged in distribution of financial services and broking.

It intends to foray into funding (through an NBFC, which is part of IIFL Group) for IPOs and non-convertible debenture purchases and also has plans to acquire 50,000 customers in 2017-18 against current 7,500 customers.

As a part of demerger that approved in October 2016, 5paisa issued 1 share of the company to IIFL Holdings’ shareholders for 25 shares held by them.

IIFL Holdings made a capital infusion of Rs 100 crore in 5paisa Capital.

Nirmal Jain, Chairman of IIFL told CNBC-TV18 that 5paisa, which differs from traditional broking as it is online based, may require capital in the future.

He said volume & scale is needed to break-even for 5paisa. Losses of 5paisa on a prolonged period will impact IIFL’s consolidated numbers, he added.

5Paisa reported a loss of Rs 10.4 crore on revenue of Rs 7.6 crore for the financial year 2016-17.

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