discount broking firm 5Paisa Capital Limited said on Wednesday that it has decided to merge IIFL Securitiesonline retail business Business with myself. The restructuring between the two IIFL group entities is aimed at consolidating the online retail business businesses under one entity, 5Paisa Capital said in a statement.

5paisa board Capital Ltd. and IIFL Securities Limited has approved the transfer of the online retail trading business of IIFL Securities to 5Paisa Capital. This is subject to regulatory approval.

As a result of the transaction, around 1.5 million clients of IIFL Securities doing online trading business will be demerged from 5Paisa Capital. This will increase 5paisa Capital’s client base by 40 per cent to over 4.7 million.

In addition, 5Paisa Capital will have strategic advantages in terms of growth in client base and revenue, including cross-selling and profitability. “With the increased customer base, we will be able to significantly promote revenue Potential with low incremental cost,” Prakarsh Gagdanisaid the CEO of 5Paisa Capital.

Also, IIFL Securities will focus its attention on the private client segment, primarily targeting customers with financial assets above Rs 1 crore.

“IIFL Securities is also planning to expand and digitally empowerment Setting up of franchise/sub-brokers to target and serve customers with financial assets of Rs 1-10 million and looking for personalized services,” the statement said, adding that customers with financial assets of less than Rs 10 million The best will be served by 5paisa Capital’s digital and online offerings.

In lieu of this transfer, shareholders of IIFL Securities will receive 1 share of Rs 10 each of 5Paisa Capital for every 50 shares of Rs 2 each of IIFL Securities held by them. record date,

“With this restructuring, the group serves all segments of customers with distinct brands and corporate entities for their diverse and specialized needs. We expect significant cost savings by removing overlap across group businesses as well,” said R. Told. VenkataramanChairman and Managing Director of IIFL Securities.

IIFL Securities is one of the leading capital market Player in the financial services sector with assets under management of Rs 1.18 lakh crore. It operates in four distinct strategic business units – Online Retail Business, Private Client Group, Institutional Equity and investment banking,