New listing of 5Paisa

There is a new listing on the bourses today, 5Paisa Capital, India’s first online trading firm. It got listed on the BSE at Rs.650 and has now slipped down to Rs.617.50.  But on the other hand, on the NSE, the stock got listed at Rs.400 and soon got locked on the 5% LC at Rs.380. The sheer difference in pricing between the two bourses is very surprising.

This new listing was not through an IPO. It is the demerged entity from IIFL Holdings. As per the demerger deal, IIFL shareholders got 25 shares of 5Paisa for every share held.

This new demerged company has an interesting promoter – 35.48% stake is held by Prem Watsa, Canadian billionaire; it is held through his firm, Fairfax Group. Another 29% is held by the Nirmal Jain promoter group of IIFL.

IIFL put in Rs.100 crore in 5Paisa, which is a trading platform – one can buy and sell, online, equity, derivatives, mutual funds, bonds, insurance, et al.