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5paisa Capital, the demerged online financial services provider of IIFL Group, was locked at the lower circuit on its debut with vast difference in price discovery on both the NSE and the BSE.
The stock opened at ₹650 and slipped by 5 per cent to close at ₹617.5 on the BSE.
On the NSE, the shares were down 5 per cent at ₹380. It touched a high of ₹400 but closed at the lower circuit. The market capitalisation on the BSE was at ₹786.63 crore while it was ₹484.08 crore on the NSE.
In 2016, IIFL demerged 5paisa Digital Undertaking into a separate entity under 5paisa Capital. All shareholders of IIFL received one share of 5paisa for every 25 they held.
The shareholding pattern of 5Paisa Capital will mirror that of IIFL Holdings. Canadian billionaire Prem Watsa owns 26.58 per cent and promoters led by Nirmal Jain hold 29 per cent.
5paisa derives its income growth from mobile-savvy youngsters and small towns. The company, which offers broking services for free, clocked daily turnover of ₹3,000 crore in equity and has seen 50 per cent growth in customer acquisition in Q2.
Being one of the entrant into the online discount broking space, it competes with Zerodha, RKSV, Samco Sec, SAS online, and Trade Smart Online.
IIFL had invested ₹100 crore in 5Paisa, a digital platform for all financial products including equities, derivatives, mutual funds, AIFs, bonds & debentures, insurance and personal loans.
5Paisa reported a loss of ₹10.4 crore on revenue of ₹7.6 crore for the financial year 2016-17.
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