IIFL Securities, 5paisa stock rise over 1% on news of merger approval
IIFL Securities share price: 5Paisa stock also rose more than 1 per cent on the news.
IIFL Securities share price: Retail broking products and service company, IIFL Securities Limited’s shares were up 2 per cent intraday after company's board of directors approved the merger with capital market company, 5paisa Capital Ltd. 5Paisa stock also rose more than 1 per cent on the news.
“We would like to inform you that, in view of the approval of the Board of Directors of IIFL Securities Limited (“Company”) to the proposed Scheme of Arrangement between the Company and 5paisa Capital Limited and their respective shareholders and creditors under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013 (“Scheme”), we enclose herewith the press release for your information and record,” the filing read.
The stock opened at Rs 68.95 apiece and quoted Rs 69 apiece which was 0.73 per cent on NSE and on BSE the stock traded at Rs 68.85 apiece.
Year To Date (YTD) the stock has declined more than 24 per cent and has dipped more than 9 per cent in the past six months.
Merger details
The boards of 5paisa Capital Ltd and IIFL Securities Ltd today approved the transfer of IIFL Securities’ Online Retail Trading Business to 5paisa Capital, subject to statutory and regulatory approvals.
According to the filing consequent to the transaction, approx 1.5 million customers of IIFL Securities undertaking Online Trading Business will be hived-off to 5paisa Capital.
IIFL Securities also plans to expand and digitally empower its base of franchisee / sub-brokers to target and service clients with Rs 1 - Rs 10 million worth of financial assets and looking for personalised services.
In lieu of this transfer, IIFL Securities shareholders will receive 1 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.
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