5Paisa Capital shares hit 5% lower circuit on market debut
Mumbai: Shares of 5Paisa Capital Ltd, the demerged entity of IIFL Holdings Ltd, made a weak debut on stock exchanges on Thursday. The stock was locked at 5% lower circuit immediately after opening as no buyers were available but what stood out was the major difference in share prices of the company on the two national stock exchanges. The online discount broking stock was listed at Rs650 per share on the BSE with trade volume of 247 shares. It was listed on the NSE at Rs400 per share with trade volume of 27,136 shares. At closing, the stock was locked at circuit at Rs617.50 and Rs380 on BSE and NSE, respectively.
“We don’t have any comments, however, all we understand is that price determination takes place at each of the stock exchanges as per Sebi circulars and exchange systems,” a spokesperson for 5Paisa said in an emailed response.
An analyst said the disparity in share prices on both the exchanges was probably due to price discovery. A BSE spokesperson said that the price discovery was as per the extant rules prescribed by Securities and Exchange Board of India (Sebi) and there was no trading glitch on BSE.
“The market has functioned properly at NSE. Prices are determined by market forces hence NSE cannot comment on the same,” a spokesperson for NSE said.
Last year, 5Paisa Digital Undertaking was spun off from IIFL Holdings as 5Paisa Capital. All shareholders of IIFL received one share of Rs10 each of 5Paisa for every 25 IIFL shares held.
5Paisa is a discount online broking firm which offers a platform for buying stocks, derivatives, mutual funds, insurance and personal loans. It is among the early entrants into the online discount broking space and competes with Zerodha, RKSV, Samco Sec, SAS online, Trade Smart Online and policybazaar.com.
The company targets the do-it-yourself (DIY) customer segment, which prefers minimum cost for various financial products. It has a robo-advisory platform that addresses all the financial needs of an individual and helps plan buying mutual funds and insurance (life, health and motor) along with low-cost broking in equity.
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