The Board of Directors of 5paisa Capital ("the Company"), India's only listed pure play discount broker today approved capital raise of Rs.2,508.7 million through a preferential issue of equity shares and warrants at Rs.500/- per share which is a premium of over 70% to today's closing price of Rs.292/- per share on NSE to a set of marquee investors and Promoters and Promoter Group. The preferential issue is subject to shareholder and other necessary approvals. The detail of the preferential issue is as follows:
WF Asian Reconnaissance Fund Limited - 2,377,400 Equity Shares - Rs. 1,188.70 mn.
FIH Mauritius Investments Limited - 898,816 Equity Shares - Rs. 449.41 mn.
HWIC Asia Fund Class A Shares - 301,184 Equity Shares - Rs. 150.59 mn.
RIMCO India Limited - 240,000 Equity Shares - Rs. 120.00 mn.
Mr. Nirmal Bhanwarlal Jain - 480,000 warrants - Rs. 240.00 mn.
Mrs. Madhu N. Jain - 480,000 warrants - Rs. 240.00 mn.
Mr. Venkataraman Rajamani - 240,000 warrants - Rs. 120.00 mn.
Commenting on the funding round, Mr Prakarsh Gagdani, CEO, 5paisa.com said, "Investment from such marquee investors and promoters is a strong vote of confidence on our business model. The business has been witnessing rapid growth with total income of over Rs.1,400 million for nine months of FY2021, up 98% year-on-year. In the midst of growing number of players, 5paisa has carved out a robust customer franchise of more than 1.3 million customers and 6.5 million mobile app users. We have grown our product offering to customers over the years which currently include broking, mutual funds, insurance, peer-to-peer lending, international stocks, gold investing and margin funding and look forward to adding more products. The availability of equity funds will help the Company accelerate its investment in customer centric technology and sustain the pace of growth."
IIFL Securities was the exclusive financial advisor to the Company for the transaction.
Shares of 5paisa Capital Ltd was last trading in BSE at Rs.291.4 as compared to the previous close of Rs. 280.6. The total number of shares traded during the day was 3918 in over 365 trades.
The stock hit an intraday high of Rs. 293.8 and intraday low of 275.4. The net turnover during the day was Rs. 1115888.