The share price of IIFL Securities surged nearly 17 percent to hit a 52-week high on Thursday after the firm won the bid to acquire Demat accounts of Karvy Stock Broking. The 1.1 million Demat accounts of Karvy were being held by accounts depositories NSDL and CDSL.

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"This is to inform you that IIFL Securities Ltd. has emerged as the successful bidder for Demat accounts held by Karvy with NSDL and CDSL. The said transfer of Demat accounts is subject to the remittance of the bid amount and submission of the necessary documents in relation thereto," IIFL Securities said in a stock filing.

The stock rose as much as 16.8 percent to its 52-week high of Rs 65.60 per share on the BSE. In just two sessions, the stock has advanced 40 percent after the news.

The 1.11 million Demat accounts have a custody value of Rs 3.01 trillion as of January 31, 2021, the company said.

Earlier this month, depositories NSDL and CDSL had said that trading, as well as Demat accounts held by Karvy, will be transferred to another member or participant through a formal bidding process on the basis of laid down eligibility criteria.

In November 2019, the Securities and Exchange Board of India (SEBI) had barred Karvy from taking new clients for misusing client collateral worth more than Rs 2,000 crore for its own trades.

IIFL Securities offers advisory and broking services, financial products distribution, institutional research and investment banking services.

First Published:Feb 25, 2021 12:44 PM IST