IIFL Securities Ltd. and Axis Securities Ltd. have won bids to acquire trading and demat accounts held by Karvy Stock Broking Ltd.
Flashback
National Securities Depository Limited (NSDL) after consulting with Central Depository Services and stock exchanges has invited bids early this month for selling demat and trading accounts of Karvy Stock Broking to settle the dues of broker’s clients and called for bids.
Acquisition details
IIFL Securities has won the bid to acquire nearly 11 lakh demat accounts held by Karvy Stock Broking with assets under management of Rs 3.01 lakh crore in a formal bidding process organised by stock exchanges and depositories.
While, Axis Securities has won the bid to acquire more than 11 lakh trading accounts held by Karvy Stock Broking, according to sources.
IIFL – third largest broker
After the acquisition of Karvy accounts, IIFL Securities the combined accounts will become 13.83 lakhs, the 3rd largest broker India after Zerodha, Upstox.
IIFL Securities is likely to pay close to Rs 140 crores for the acquisition, as per sources.
Completion of deal
The said transfer of broking and demat accounts is subject to remittance of the bid amount and submission of the necessary documents.
Market Share
Currently discount broking firm Zerodha is the topmost stockbroker with 31.43 lakh demat account followed by Upstox which has 18.53 lakh accounts.
ICICI Securities and Angel Broking held 13.47 lakhs and 13.25 lakhs demat account.
Impact on Stock Market
Shares of IIFL Securities ended 20% higher on Wednesday—the biggest single-day gain since listing in September 2019—at Rs 56.40 apiece.
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