Stock Report

Prime Securities Ltd to acquire 42% Strategic Stake in Ark Neo Financial Services Ltd

Posted On : 2024-12-12 22:00:23( TIMEZONE : IST )

Prime Securities Limited (NSE: PRIMESECU | BSE: 500337) (SEBI registered Category-I Merchant Banker) (www.primesec.com), a premier investment banking and corporate advisory services provider, has acquired 41.68% stake in Ark Neo Financial Services Private Limited, the Chennai-based fintech platform known as "DhanLAP." Further, Prime will infuse capital into the company by subscribing to optionally convertible debentures. On conversion Prime's holding will move above 50%. Prime's total investment will be to the tune of INR 700 lakhs/70 millions.

This acquisition is part of Prime Securities' broader strategy to diversify and strengthen its portfolio. Recently, the company expanded into the wealth management sector through its wholly owned subsidiary, Prime Trigen Wealth Ltd. (PTWL).

DhanLAP is a digital platform for instantly availing loans against financial products including mutual funds, shares, and insurance, for retail investors. It was launched in October 2021 and was a pioneer in this segment. The platform has established partnerships with leading lending institutions and is poised to meet the increasing demand for finance in India.

Mr. C Chandrasekhar is the Founder and CEO of Ark Neo Financial Services Private Limited and has been a serial entrepreneur for the last 20+ years building and managing companies in the USA and India. His companies have been in the online financial services spectrum offering products for retail customers.

Speaking about the platform, C R Chandrasekhar, Founder & CEO of Ark Neo Financial Services Private Limited, said, "Most retail investors are unaware that their investments in mutual funds and stocks can be used as collateral for securing loans. In times of financial need, many tend to redeem their mutual fund units, which disrupts their long-term financial goals and wealth-building plans. With DhanLAP, we have streamlined the entire process, making it quick and convenient by fully digitizing the journey to access finance. This solution not only addresses their immediate financial needs but also ensures that their wealth continues to grow without interruption. We are excited to have Prime Securities Ltd. as our major shareholder, which will enable significant synergies between Ark Neo and Prime Securities, helping us scale and innovate further."

Mr Akshay Gupta, Director at Prime Securities, said, "DhanLAP, with its innovative approach to loans against securities, is perfectly aligned with Prime Securities' strategic vision of expanding into scalable, technologydriven solutions in the financial services sector, driving long-term growth and value. These products are commonly offered by large private banking firms to their HNI clients. Given the significant increase in investor participation in financial markets in recent years, DhanLAP aims to make these offerings more accessible through an omnichannel presence."

Shares of Prime Securities Limited was last trading in BSE at Rs. 292.35 as compared to the previous close of Rs. 299.15. The total number of shares traded during the day was 9694 in over 428 trades.

The stock hit an intraday high of Rs. 299.10 and intraday low of 285.10. The net turnover during the day was Rs. 2808719.00.