M&A M&A
Discount broking co 5paisa to buy IIFL Sec's online retail broking biz
Source BSE Disclosure (opens in a new tab)Economic Times (opens in a new tab)
5paisa.com, a discount broking unit belonging to IIFL Group, is buying fellow publicly listed group company IIFL Securities' online retail broking business in an all-stock deal. IIFL Securities shareholders will receive one share of 5Paisa Capital for every 50 shares held by them.
Post transaction, IIFL Securities will focus on wealth management and advisory. The merger is part of IIFL's move to restructure its listed broking subsidiaries. The merger will increase 5paisa.com's customer base by about 40% to 4.7 million.
In 2016, IIFL demerged 5Paisa Digital Undertaking from the company into 5Paisa Capital. Canada's Prem Watsa's Fairfax owned 25.04%, and promoters led by Nirmal Jain held 32.69% in 5Paisa Capital as of September 30, 2022.