Shares of IIFL Wealth Management, the demerged entity of IIFL Holding, were locked in the upper circuit band of 5 per cent at Rs 1,271 on debut on the National Stock Exchange (NSE) on Thursday. On the BSE too, the stock was frozen at 5 per cent upper circuit at Rs 1,260, after opening at Rs 1,200.
Till 02:18 pm, a combined 1.8 million equity shares changed hands and there were pending buy orders for 1.9 million shares on the NSE and BSE. In comparison, the benchmark indices were down 1.2 per cent each.
The board of directors of IIFL Finance (formerly IIFL Holdings) at its meeting held on January 31, 2018, had approved the reorganization of IIFL Group, which resulted in three listed entities – IIFL Finance, IIFL Wealth and IIFL Securities and the same became effective from May 13, 2019.
IIFL Wealth Management has now become the first standalone listed wealth management company in India. IIFL Securities will make stock market debut on Friday, September 20, 2019.
The management said this move is aimed at enabling each business to grow faster, attract the right talent and become more innovative and efficient. In addition, the shift from close-knit conglomerate to separate entities will ensure simpler regulatory compliance, enhanced value for stakeholders along with more synergistic benefits.
As per the arrangement, for every seven shares of IIFL Holdings — the listed company — a shareholder will get seven shares each of IIFL Finance and IIFL Securities, and one share of IIFL Wealth.
Shares of IIFL Finance were trading 4 per cent lower at Rs 109 on the BSE. A combined 111,254 equity shares changed hands on both the exchanges.