5paisa Capital makes U-turn; hits lower circuit after rising in early trade

The stock was locked in the upper circuit for the eight straight day, up 5% at Rs 329 on BSE, surging more than 72% in the past nine days.

Making a U-turn, shares of 5paisa Capital hit a lower circuit limit of 5 per cent at Rs 297.55 apiece on BSE after hitting an upper circuit in the early trade on Tuesday.  

The stock was locked in the upper circuit of 5 per cent at Rs 329 in the early deals today. It was the eighth straight day that the stock hit an upper circuit, surging more than 70 per cent in the past nine days after the promoter increased stake in the company.

Since December 26, the stock of 5paisa Capital has rallied 72 per cent from Rs 191 after Nirmal Bhanwarlal Jain, the promoter of the company had purchased an additional 50,000 equity shares through an open market purchase. In comparison, the S&P BSE Sensex gained 1 per cent during the same period.

Post-transaction, promoters holding in the company increased to 30.4 per cent from 30.01 per cent, according to the disclosure made by the company to the stock exchanges.

Meanwhile, Satpal Khattar sold its entire 1.94 per cent stake or 246,861 shares of 5paisa Capital at Rs 190 per share on BSE, as per the bulk deal data.

The names of the other buyers were not ascertained immediately.

5paisa Capital, an IIFL-backed company, is engaged in the business of securities broking and distribution of financial products primarily through the internet and mobile applications.

With reference to the significant movement in price, the company on January 2 clarified that "there was no information /announcement (including pending announcement) which in our opinion may have a bearing on the price/volume behavior in the scrip."

5paisa Capital had reported a standalone net loss of Rs 12.71 crore in the first half (April-September) of the financial year 2018-19 (FY19). It had posted a net loss of Rs 11.66 crore in the same period last fiscal.

The wholly-owned subsidiary of the company namely 5paisa P2P limited (5paisa P2P) has received an in-principle approval for registration as NBFC Peer-to-Peer Lending Platform (NBFC-P2P) from Reserve Bank of India (RBI).

“In terms of the said approval, 5paisa P2P is required to set up the systems and processes and to comply with the other terms and conditions within a period of 12 months for obtaining final approval from RBI and commencement of P2P activities”, 5paisa Capital said on October 17, while announcing September quarter results.

The stock had hit a 52-week high of Rs 507 on May 8, 2018, and a 52-week low of Rs 171 on October 24, BSE data showed.