Fintech company 5Paisa Capital, an online financial services provider belonging to the IIFL Group, got listed on Thursday at a 5% discount to the prices in pre-opening trade on bourses. The stock debuted at Rs 380 on the NSE, lower by 5% from the pre-opening price of Rs 400 per share while on the BSE, it listed at Rs 617.50, a 5% discount to pre-opening price of Rs 650. There was a difference of Rs 237.5 in the price discovery on exchanges. The listing of 5Paisa completes the demerger of the firm from its parent IIFL Holdings. All existing shareholders of IIFL were allotted shares in the demerged entity in the ratio of 25:1. 5Paisa Capital became India’s first listed fintech company which provides financial services only digitally without human intervention. The listing completes the demerger of the firm from its parent IIFL Holdings. All existing shareholders of IIFL will be allotted shares in the demerged entity in the ration of 25:1. The parent company had earlier infused Rs 100 crore as a fresh capital in the demerged entity.
“Technology is disrupting every sector and finance is not isolated. As a fintech company we would like to be at the forefront of this disruption. Our innovative offers such as no brokerage charge and Rs 10 flat fee per trade, robo advisory etc. are a few measures in the right direction. 30-35% of our business comes from robo-advisory platform. The only challenge in robo-advisory is to make this technology look very simple,” 5Paisa Capital CEO Prakash Gagdani said. 5Paisa Capital, which commenced operations a year ago, has been offering discount broking services. Besides stock trading, the company also provides other services like Mutual Funds, IPO, Insurance, Research etc.
It will soon be unbundling its financial advisory turning it into a completely digital offering with features such as Robo Advisory and-to-end Algo-based solutions. Elaborating on the development, Nirmal Jain, founder and chairman of the IIFL Group, said that the listing conforms to IIFL Group’s practice of maintaining high standards of corporate governance and ethical business practices. “Listing brings the transparency in working, great degree of compliance and gives retail and institutional investors an opportunity to participate in growth by buying shares of the company,” added Jain.