IIFL Securities - Consolidating Online Retail Trading Business: ICICI Direct

ICICI Direct Report

The boards of IIFL Securities Ltd, and 5Paisa Capital Ltd. have approved transfer of the former’s online retail trading business to 5Paisa Capital subject to statutory approvals.

The reorganisation between the two IIFL group entities aims to consolidate online retail trading businesses under one single entity.

Business reorganisation has been undertaken to mitigate overlap and, thus, focus on scalability, profitability and efficient utilisation of capital.

Accordingly, ~15 lakh low ticket size customers which contributes ~5% of average daily turnover (low ticket size defined as customer with asset base of up to Rs 10 lakh) will be shifted from IIFL Securities to 5Paisa Capital.

IIFL Sec henceforth will focus on larger tick size customer with asset base of above Rs 1 crore. Next leg of expansion plan includes targeting customer asset base of Rs 10 lakh‐1 crore.

Following the transfer, IIFL Securities shareholders will receive one 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.

Currently, IIFL Securities operates in four business segments i.e. online retail trading, private client group, institutional equities and investment banking and franchisee.

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