BQ Prime's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Direct Report
5Paisa Capital Ltd. is a leading discount stock broker backed by the Nirmal Jain led IIFL group.
The boards of IIFL Securities Ltd. and 5Paisa Capital approved the transfer of 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 lakhs) will be shifted to 5Paisa Capital from IIFL Securities.
Following the transfer, 5Paisa Capital will issue its one share of Rs 10 paid up for every 50 shares of Rs 2 paid up in IIFL Securities held by them as on the record date.
Acquisition will increase scale for 5Paisa. Client base will increase from ~32 lakh to ~47 lakh with market share rising from current 3.2% to 4.5%.
Proposed dilution will be 16.58% after issue of additional shares (on the basis of post issue of shares).
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
