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The boards of 5paisa Capital Ltd. and IIFL Securities Ltd. have approved the transfer of the latter’s online retail trading business 5paisa Capital. However, the approved proposal is subject to statutory and regulatory approvals.

Shares of 5paisa Capital gained over 3 percent in early trade on Wednesday while IIFL Securities' shares increased over 2 percent amid the news of the acquisition.

The reorganisation between the two IIFL Group entities aims to consolidate the online retail trading businesses under one single entity. Further, 5paisa Capital and IIFL Securities have reorganised their businesses to focus on online retail and affluent customers.

As part of the transfer of business, IIFL Securities shareholders will receive 1 share of Rs 10 paid up of 5paisa Capital for every 50 shares of Rs 2 paid up of IIFL Securities held by them as on the record date.

Post the transaction, as many as 1.5 million customers of IIFL Securities undertaking online trading business will be hived off to 5paisa Capital.

5paisa Capital’s customer base will increase by 40 percent to over 4.7 million customers post-merger.

IIFL Securities will sharpen its focus on the private client groups (PCG), targeting clients with financial assets above Rs 1 crore whereas 5paisa Capital will take care of clients with less than Rs 10 lakh of financial assets.

5paisa Capital Ltd. shares are trading 1.81 percent higher at Rs 334.40 while IIFL Securities Ltd shares are trading 0.36 percent higher at Rs 68.75.

(Edited by : Rukmani Krishna)

First Published:Dec 7, 2022 2:43 PM IST