Digital rewards platform GyFTR will begin trading on the National Stock Exchange on Friday after becoming one of the few companies to reach India's public markets without launching an initial public offering. The company entered the stock market by merging with an already listed company, completing an uncommon route to listing that bypassed the traditional IPO process.
The NSE has approved the listing of 7.68 crore equity shares of GyFTR, giving investors access to trade the stock on India's largest equity exchange. The listing follows the company's transformation from BSE-listed LKP Finance into GyFTR Ltd., after the former non-banking finance company acquired the digital rewards business, surrendered its NBFC licence and changed its name.
The transaction allowed GyFTR to become a publicly traded company without launching an IPO. LKP Finance then obtained shareholder approvals, completed a bonus share issue and changed its name to GyFTR Ltd. The Ministry of Corporate Affairs approved the name change in April, after which the company began trading on the BSE under its new identity.
Friday's NSE debut is expected to reflect shareholder sentiment around the company's identity transformation. The company has already been trading on the BSE for several months, with the stock recently hovering around Rs 170-175 per share, implying a market capitalisation of roughly Rs 1,340 crore. The shares had climbed to nearly Rs 240 after investors first reacted to the GyFTR transaction before giving up part of those gains in subsequent months.
Because the stock is already listed on the BSE, market participants expect trading on the NSE to begin near the prevailing BSE price, with arbitrage activity likely to prevent any material divergence between the two exchanges. Investors will instead be watching whether the NSE listing attracts greater institutional and retail participation, boosts trading volumes and leads to a re-rating of the stock.
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