5Paisa Capital of IIFL Group will list on November 16
Mumbai: 5Paisa Capital, an online financial services provider belonging to IIFL Group, will make its debut on the bourses on November 16. Market watchers expect the company to list between Rs 180 and Rs 200 apiece, which will value it at approximately Rs 250 crore. IIFL’s market capitalisation was Rs 19,000 crore on Tuesday.
In 2016, IIFL demerged 5Paisa Digital Undertaking from the company into 5Paisa Capital. All shareholders of IIFL have received one share of 5Paisa for every 25 IIFL shares held. Shareholding pattern of 5Paisa Capital will mirror that of IIFL Holdings, said company officials. Canadian billionaire Prem Watsa will own 26.58 per cent and promoters led by Nirmal Jain will own 29 per cent in 5Capital.
IIFL had invested Rs 100 crore in 5Paisa, a digital platform for all financial products including equities, derivatives, mutual funds, AIFs, bonds & debentures, insurance and personal loans.
5Paisa derives its growth from mobile savvy millennials and small towns, said Nirmal Jain, founder and chairman, IIFL Group.
“As we are mobile-first and 100 per cent online, we attract a lot of new millennials. More than 60 per cent of our clients come from tier-3, tier-4 and beyond towns,” said Jain.
The firm, clocking Rs 3,000 crore daily turnover in equity trading, said it has seen 50 per cent growth in customer acquisition on a quarter-on-quarter basis for the period ending September 30.
“We are growing 80-85 per cent Q-o-Q in fresh systematic investment plans and out target is to hit Rs 100 crore of AUM in next one year,” said Prakarsh Gagdani, CEO, 5Paisa Capital.
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Via:: Economic Times – Stocks