Can same company have different market cap on both nse and bse?

General
1

I saw one stock Bafna pharma which has two different price in nse and bse and deferent mcap. Why like that?

2

@SubairNA…just had a glance …Bafna pharma was RE-LISTED after 90% capital reduction on 27 February 2020 but price could only be discovered on 2 March . except for few days i guess it is in T group where maximum circuit allowed is 5% . since there is a huge very huge difference in traded market price at both the exchanges , there has to be difference in mcap too …perhaps a unique case.

3

So is it possible to take arbitrage by buying one exchange and sell on other?

4

Yes but not easy to get opportunity to buy at place where it is cheap.

5

It is hitting circuit limits in both exchanges, what looks like easy money making opportunity, isn’t one after all.

6

Yes a company may have different market caps on BSE and NSE.For clarification I have taken Reliance Industries :Limited.

First image shows the market Capitalisation of RIL 6,40,153.69 Crores. This is a Free float market capitalisation which means shares which do not belong to promoters of the company and therefore these shares are not available for trading purpose.

Source: NSE website

Second image show the Free floating market capitalisation of RIL on BSE as Rs. 6,69,391.01 Crores

Source: https://www.bseindia.com/stock-share-price/reliance-industries-ltd/reliance/500325/

So a trader can benefit from this difference as he can arbitrage between the two exchanges. But this cannot be achieved easily. A trades needs to be very active all out the day to see these differences and take advantage of arbitration.

1 Like
7

yeh… one need to be very quick in spotting such arbitrage opportunity, institutions with algos will quickly take benefit of any such differences by the time small trader spots any such opportunity and put a trade.

8

Thanks for the information