The shares of 5Paisa Capital Ltd. gained the most in seven weeks on the acquisition of IIFL Securities Ltd.’s online retail trading business.
The acquisition will increase 5Paisa Capital’s customer base by 40%, while equity dilution will be 20%, the company said in its exchange filing.
Shareholders of IIFL Securities will receive one share of 5paisa Capital carrying a face value of Rs 10, for every 50 shares of IIFL Securities having face value of Rs 2 held by them on the record date.
“We are excited to acquire the online retail trading business of IIFL Securities. With an increased customer base, we will be able to significantly boost revenue potential with less incremental cost,” said Prakarsh Gagdani, chief executive officer at 5paisa Capital.
The single analyst tracking the stock maintains a ‘buy’ rating, according to Bloomberg data.
Shares of the company rose 1.49% to Rs 333.35 apiece as of 1:35 p.m., compared with a 0.17% decline in the benchmark Nifty 50. The total traded volume rose by more than 1.32 times on Wednesday, as per BSE.