5Paisa Capital, a discount brokerage and financial advisory entity, made its debut on the bourses on Thursday to become the first such listed financial digital marketplace.
On the BSE, the shares opened at ₹650 but immediately fell 5% to close at its lower circuit of ₹617.50. At Thursday’s closing price, the market capitalisation of the company was pegged at ₹787 crore.
5Paisa Capital is a subsidiary of IIFL Holdings, and got listed after the online financial services entity demerged from the parent entity. All existing shareholders of IIFL were allotted shares in the demerged entity in the ratio of 25:1. The parent company had earlier infused ₹100 crore as fresh capital in the demerged entity.
The company plans to revamp its financial advisory services with digital features such as robo advisory and end-to-end algo-based solutions to help its customers in their trading and portfolio monitoring activities.
5Paisa Capital commenced operations as an integrated financial marketplace a year ago Apart from stock trading, it also provides other services like mutual funds, IPOs, insurance, research, etc.
The company, with its 100% digital platform, registered an year-on-year income growth of 86% in the second quarter of the current financial year. Customer acquisition had also witnessed a 50-60% growth (Q-o-Q) in the same period. Currently, it clocks a daily turnover between ₹2,500 crore and ₹3,000 crore on the stock exchanges.
“Our objective is to emerge as a complete digital marketplace for all financial products... The listing gives us the much-needed scale to realise our dreams. Our 50,000-strong customer base is trading at zero brokerage and a flat fee of ₹10 per trade,” said a statement issued by the company quoting Prakarsh Gagdani, chief executive officer, 5Paisa Capital.
