5Paisa Capital Ltd to get Demerged from IIFL
The board of IIFL Holdings has approved to demerge 5paisa Digital Undertaking from IIFL Holdings into its subsidiary 5paisa Capital Limited (5paisa). Post de-merger, 5paisa Capital will be listed on BSE and NSE (subject to regulatory approvals).
The board of directors of the company considered and approved the proposed demerger of 5Paisa Digital Undertaking from IIFL into 5Paisa Capital, a 100 percent subsidiary of IIFL engaged in distribution of financial services and broking. The proposed arrangement does not involve any change in the capital structure of IIFL Holdings. IIFL Holdings has made a capital infusion of Rs. 100 Cr. in 5paisa Capital Ltd.
There is no cash consideration in this de-merger. The consideration is by way of allotment of equity shares by 5Paisa Capital to the shareholders of IIFL in the ratio of 1 share of Rs. 10 each of 5Paisa for every 25 shares of IIFL held by the shareholders of IIFL. 5paisa will acquire, service and grow the new emerging DIY (Do-it-yourself) customer segment who prefer least cost for various financial products.