The shares of 5Paisa Capital zoomed 17.65% on Monday’s early trades after the company got shortlisted as a Qualified Stock Broker (QSB) by the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
In accordance with the Securities and Exchange Board of India’s (SEBI) guidelines, the exchanges included 15 brokers as QSBs and 5Paisa Capital was one of them, after taking into consideration various factors like the size, trading volume, and amount of clients’ funds handled by these brokers. This designation is given to ensure the orderly functioning of the securities market and to protect the interest of investors in the securities market.
In another development, the company’s shareholders have approved the increase in ESOP (employee stock option plan) pool for the grant of options and an amendment in the company’s ESOP Scheme, 2017.
5Paisa Capital is a fintech company having a presence in online discounted stock broking, depository services, research, distribution of financial products, and peer-to-peer lending. Its promoter, Nirmal Jain is also the promoter of the IIFL Group.
It is a small cap company with a market capitalization of ₹ 853 crores and its shares closed at ₹ 300.00 apiece. The company’s shares were trading at a price to earnings ratio of 25.41 which is significantly higher than the industry average of 20.49, indicating the stock might be overvalued as compared to its peers.
Written by Simran Bafna
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