IIFL’s 5Paisa Capital lists with huge price difference

IIFL Holdings’ subsidiary 5Paisa Capital listed on the bourses on Thursday as the first listed financial marketplace in India. But the price discovery process for the demerged business led to a huge difference in its listing price on BSE and NSE.

On the BSE, 5Paisa capital listed at Rs 650 a share while on the NSE it listed at Rs 400 per share.

The demerger of 5Paisa Capital from IIFL Holdings was announced last year in October.

The shares of 5Paisa Capital closed 5 per cent lower at Rs 617.50 on the BSE, with a market capitalisation of Rs 786.63 crore while on the NSE, the share closed 5 per cent lower at Rs 380 per share, with a market capitalisation of Rs 484 crore.

Brokers said it will take a few sessions for the share prices on the two bourses to adjust and bring down the huge difference seen on Thursday.

Meanwhile IIFL Holdings’ shares gained 3.66 per cent to close at Rs 604.60 on the BSE and at Rs 605.05 on the NSE.

Last year, IIFL announced the demerger of 5 Paisa Digital Undertaking, to be listed as a separate company with a new brand name, 5Paisa Capital, to grow digital way of trading in securities, which is emerging as a new segment.

All shareholders of IIFL were allotted shares in the demerged entity in the ratio of 25:1.

In its new avatar 5Paisa Capital is into discount broking. It provides online trading facilities for equities at a flat fees of Rs 10 per trade, irrespective of the segment cash or derivatives.It also provides online investing facilities for mutual funds and insurance.