IIFL Securities up 40% in 2 days on winning bid to acquire Karvy's accounts

Shares of IIFL Securities, on Thursday, shot up 17 per cent to hit a record high of Rs 65.60 on the BSE in intra-day, thereby surging 40 per cent in the past two trading days, after the company emerged as the successful bidder for demat accounts held by Karvy with National Securities Depository (NSDL) and Central Depository Services (India) (CDSL).

On February 6, depositories NSDL and CDSL had said that trading as well as demat accounts held by Karvy Stock Broking (Karvy) will be transferred to another member or participant through a formal bidding process on the basis of laid down eligibility criteria.

In accordance with the above, IIFL Securities had participated in the formal bidding process for transfer of demat accounts held by Karvy. 

"This is to inform you that IIFL Securities Ltd. has emerged as the successful bidder for demat accounts held by Karvy with NSDL and CDSL. The said transfer of demat accounts is subject to remittance of the bid amount and submission of the necessary documents in relation thereto," IIFL Securities said in a stock filing.

IIFL Securities will get 1.11 million demat accounts with custody value of Rs 3.01 trillion as on January 31, 2021, the company said.

IIFL Securities is one of the key capital market players in the Indian financial services space. IIFL Securities along with its subsidiaries offers advisory and broking services, financial products distribution, institutional research and investment banking services.

At 10:38 am, the stock was trading 9 per cent higher at Rs 61.15 on the BSE, as compared to 0.87 per cent rise in the S&P BSE Sensex. The trading volumes on the counter jumped an over three-fold with a combined around 6.8 million equity shares changing hands on the NSE and BSE, so far.